Luke Attard was briefly jailed and then ordered to pay $10,000 for contempt of court after failing to promptly release bank records as part of High Court litigation brought by former shareholder Gordon Stuart over liquidation of their Auckland window cleaning business Lightning Cleaning Services Ltd.
The two 50/50 shareholders have fallen out. Lightning is in liquidation. Mr Stuart alleges director and fellow shareholder Mr Attard sold off company assets and is hiding the proceeds. In August 2017, Mr Attard was restrained by court order from selling off Lightning’s assets. At the same time, Mr Attard was ordered to fully explain details of any asset sales to date. In particular, two transactions were in question: $70,000 transferred from Lightning to a family trust controlled by Mr Attard and $95,000 paid to a company he controlled. He refused to provide details. This resulted in Mr Attard being imprisoned overnight for contempt of court. He provided the information next day.
Justice Powell then fined Mr Attard for his contempt. Fines are intended to hold individuals accountable for their conduct and to deter others from defying court orders. The $10,000 fine is to be split: half to the Justice Department; half to Mr Stuart. He was also ordered to pay Mr Stuart’s costs of $20,000. Justice Powell said failure to pay will see Mr Attard again jailed for contempt.
Stuart v. Lightning Cleaning Services Ltd – High Court (30.04.18)
18.092