Owing some $478,000, part of on an agreed out of court settlement in litigation over Biomex’s Marlborough Sounds mussel farming operation, Philip John Wilson was later bankrupted for non-payment despite his complaints that a claimed set-off of $2.7 million was not covered by the agreed settlement; it was and in any event any set-off was statute-barred as being out of time.
The High Court was told Mr Wilson had managed Biomex’s mussel farm operations since 1996. Controlled by Australian interests, Biomex took legal action alleging unauthorised expenditure by Mr Wilson and alleging Mr Wilson and interests associated with him had taken Biomex mussel spat using it to operate their own business within Biomex operations. Biomex alleged resources totalling over $960,000 had been diverted. Part way through the March 2017 trial, an out-of-court settlement was negotiated. Mr Wilson agreed he personally owed Biomax $478,000. Other defendants were also party to the settlement. Subsequently, companies associated with Mr Wilson were put into liquidation and Mr Wilson’s wife bankrupted.
Mr Wilson resisted bankruptcy; while he owed Biomax $478,000, Biomax in turn owed him some $2.7 million, he claimed. The court settlement did not block his $2.7 million claim, he said. Associate judge Lester ordered his bankruptcy. A ‘full and final settlement’ clause in the out-of-court settlement disposed of any claim he might have. Even if proved, the claimed set-off was not enforceable; it related to events occurring prior to 2014 and were barred by the Limitation Act as being out of time, Judge Lester ruled.
Wilson v. Biomex Trustees Ltd – High Court (19.05.20)
20.083