Failing to return funds mistakenly credited to a bank account led to bankruptcy for Bay of Plenty resident Stephen George Gibson Clark.
The High Court was told Levin-based Moxham Milk Ltd paid some $26,500 into an ANZ bank account in June 2018 mistakenly thinking payment was going into the account of fertiliser supplier Zenith Ltd. Getting the money back proved difficult. Moxham Milk claimed an account controlled by Opotiki resident Stephen Clark made a windfall gain and that Mr Clark refused to return the funds. Mr Clark admitted the account was in his name but said he did not control the account and had never been ‘in possession’ of the mislaid money. The account was a trading account for Eco-Farm, he said. Moxham Milk was to later learn that much of the missing money was transferred five days after receipt into the account of Eco-Farm Aotearoa Ltd.
Moxham Milk sued in the District Court. Mr Clark was ordered to repay $34,660; the amount due now increased by fees and legal costs. Mr Clark disputed Moxham Milk’s High Court application to bankrupt him for non-payment. Moxham provided email evidence from the Police, ANZ Bank and another fertiliser supplier all confirming that Mr Clark owned and controlled the bank account mistakenly receiving Moxham’s money.
While ultimate control of the account into which funds were mistakenly paid is unclear, this does not relieve Mr Clark from personal responsibility for repayment, Associate judge Taylor said.
Moxham Milk Ltd v. Clark – High Court (21.10.22)
22.177