Disputed remediation costs for Hobson Towers in Auckland’s central business district has raged for more than ten years with owner of the top floor, Manchester Securities Ltd, now in liquidation and the company’s controlling shareholder Robert Cummins facing bankruptcy. Cummins complains that Manchester is bearing a multimillion dollar cost including new roofing that should be shared with lower level owners.
Their remediation dispute kicked off in 2010, eventually leading to legal argument about application of a Unit Titles Act scheme of arrangement intended to settle repair costs. Manchester Securities and Mr Cummins have been engaged in near mortal combat with Hobson Towers’ body corporate through numerous rounds in both the High Court and the Court of Appeal.
In 2020, Manchester was put into liquidation for non-payment of body corporate levies. Becoming involved in a personal capacity along the way, Mr Cummins was ordered to pay $33,800 costs to the body corporate. It now seeks to bankrupt Mr Cummins for non-payment.
He asked the High Court to put this bankruptcy application on hold. He says that he can exercise rights held by his company Manchester Securities such that he has a claim against the body corporate which exceeds the $33,800 debt claimed by the body corporate from him; claimed rights amounting to several million dollars, he says.
Associate judge Johnston refused both to delay the bankruptcy hearing and to allow an appeal from his ruling.
Even if Mr Cummins can prove he has the right to stand in the shoes of Manchester and sue the body corporate, Manchester itself has no immediate right to sue because it is first required to go to arbitration and there is no immediate prospect of that happening, he said.
The body corporate’s application to have Mr Cummins bankrupted requires a further court hearing.
Cummins v. Body Corporate 172108 – High Court (10.11.23)
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