After improperly triggering insolvency procedures attempting to force payment of a disputed debt claimed by Lynx Trustees Ltd, Wellington director Roy Barrett-Burr was held personally liable for $21,600 court costs subsequently levied against Lynx which is currently in liquidation.
The costs order against Mr Barrett-Burr personally arose out of a long running dispute between Lynx Trustees and Quentin Haines. Each claims money is owed by the other. This dispute is further complicated by an equally long running personal dispute between Mr Haines and Harry Memelink who is Mr Barrett-Burr’s brother-in-law. Mr Memelink is bankrupt.
In 2019, Mr Barrett-Burr signed five formal statutory demands in name of Lynx Trustees claiming sums from Mr Haines and from companies associated with Mr Haines for amounts ranging between $140,800 and $421,300. This was a preliminary legal step seeking to bankrupt Mr Haines and to put his companies into liquidation. The courts take a dim view of insolvency procedures being used when there is still a dispute over debts claimed.
In the High Court, Mr Haines had these statutory demands set aside. How much was owed was still in dispute. Following a further formal court application, Mr Haines got a court order holding Mr Barrett-Burr personally liable to reimburse his costs of $21,600. The demands were issued in the name of Lynx Trustees, but Mr Barrett-Burr as Lynx director was personally liable for not acting prudently and for improperly issuing in Lynx Trustees’ name statutory demands for debts that were clearly in dispute.
Haines v. Bassett-Burr – High Court (11.11.22)
23.003