Given permission for temporary relocation of his company’s baled waste at a Christchurch commercial site, director Michael Corcoran was ordered to pay $2.83 million damages for trespass after abandoning this waste product.
In early 2021, Mr Corcoran’s company ERP Group Ltd took a short term lease on warehouse space owned by Nuttall Properties Ltd on Port Hills Road in Christchurch. It was intended the baled waste would be incinerated at a waste to energy plant with whom ERP claimed to have a supply contract. That did not happen.
Meanwhile, Nuttall’s insurers advised cover for the warehouse would be cancelled unless the baled waste was removed from the warehouse on a date in January 2022 when ERP’s short-term lease was due to expire.
To avoid insurance complications, Nuttall agreed with Mr Corcoran on lease expiry date that the thousands of bales could be shifted to an adjoining yard, an area not covered by the warehouse lease. The agreement was clear; this was a temporary arrangement. The baled waste was to be shifted offsite permanently, with the short-term warehouse lease having expired.
The High Court was told Mr Corcoran took his time, relocating the bales to the outside yard over a period of some ten weeks. Shortly afterwards, ERP Group went into liquidation. Mr Corcoran and his company walked away from the problem, abandoning the baled waste.
Nuttall Properties spent $2.831 million clearing the site. It sued Mr Corcoran for trespass.
Associate judge Lester ruled the arrangement for ERP Group to temporarily relocate was made with Mr Corcoran personally. There was no agreement to leave bales in the adjoining yard for an extended period. Having supervised relocation of the bales, Mr Corcoran was personally liable for the tort of trespass.
Nuttall Properties Ltd v. Corcoran – High Court (8.09.23)
23.193