Long-running dispute over remediation costs for Hobson Towers in Auckland’s central business district ended with the body corporate bankrupting Wellington-based Robert James Cummins over unpaid litigation costs, bringing to a close a fifteen-year argument over allocation of repair costs for his twelfth-floor apartment held in the name of Manchester Securities Ltd, itself in liquidation insolvent.
Plans to remediate Hobson Towers kicked off in 2009, with Mr Cummins’ Manchester Securities accepting responsibility for work on its top floor apartment.
Over fifteen years later, this work is not complete, compounded by rounds of litigation arguing what part of Manchester’s costs may or may not be a body corporate expense.
Manchester Securities was forced into liquidation in 2020 for unpaid body corporate fees.
It currently owes in excess of one million dollars.
Participating in several unsuccessful appeals to stop this liquidation, Mr Cummins was ordered in 2021 to contribute $32,800 towards body corporate costs. Four years on, he was bankrupted following a failure to pay these costs.
The High Court was told Mr Cummins eventually came to owe Hobson Towers body corporate more than $168,000 in litigation costs, following further unsuccessful litigation.
The court dismissed his last ditch steps to avoid bankruptcy.
Mr Cummins claimed that through Manchester Securities he had several valid cross-claims against Hobson Towers body corporate.
Associate Judge Skelton ruled these cross-claims lack substance.
Even if Manchester Securities were to succeed in its claims, this would be of little financial benefit to Mr Cummins, he pointed out. A multi-party agreement between Manchester Securities’ liquidator, secured creditors and the body corporate, sees Mr Cummins well down the list of claimants entitled to any payout.
Mr Cummins claimed bankruptcy was pointless; he has no assets of substance.
Body Corporate said there was no proof Mr Cummins has no assets.
It was in the public interest to have Insolvency Service investigate Mr Cummins personal financial position, Judge Skelton ruled.
Mr Cummins plea that special circumstances meant bankruptcy should be refused was also dismissed.
There has been a protracted and convoluted dispute since 2009 over repair of Hobson Towers in which Mr Cummins has played a central role, Judge Skelton said. The legitimate interests of other apartment owners are being grossly prejudiced. Ongoing disputes, litigation, the failure to complete necessary remedial work for level twelve, and now a delay in determining his bankruptcy are prejudicial to their interests, he said.
Body Corporate 172108 v. Cummins – High Court (30.05.25)
25.132
Post judgment note: Companies Office reports filed by Manchester Securities’ liquidator state that he has been unable to arrange funding for completion of work on Hobson Towers level twelve and has abandoned the project.
It is common for bodies corporate to assume control of apartments abandoned by their owners.