Promoted from the shopfloor in Japan to sole director of New Zealand sale operations, Yujiro Fujisawa was ordered to pay $1.01 million damages for reckless trading, following trading losses over a ten year period.
The High Court was told Callin Auto New Zealand Ltd was incorporated in 2012 as a wholly-owned subsidiary of a Japanese company exporting used cars.
Mr Fujisawa was appointed director. He had previously been a student in New Zealand.
Evidence was given that Callin New Zealand began slipping on deadlines for making payments due Japan after about two year’s operations. Mr Fujisawa become increasingly difficult to contact.
By mid-2016, he had stopped sending monthly sales reports to head office in Japan.
With payments falling further behind, staff from head office met with Mr Fujisawa in New Zealand, negotiating a payment schedule requiring fifty per cent of outstanding debt to be paid immediately, the balance by monthly instalments. This agreement was not honoured.
Mr Fujisawa did not respond to head office demands he make Callin’s New Zealand bank statements available.
In 2022, Callin was put into liquidation by its Japan shareholder.
This was some two years after Mr Fujisawa resigned from the company.
Investigations by its liquidators found Callin New Zealand had been insolvent for much of its existence.
It held no unsold cars at date of liquidation. Debts owed to Bank of New Zealand, Inland Revenue and Japan exceeded one million dollars.
Liquidators identified some $255,400 spent on what appeared to be entertainment expenses: restaurants, bars and golf. Mr Fujisawa said these were legitimate business expenses, hosting clients.
Justice Johnstone held Mr Fujisawa personally liable for company debts totalling $1.01 million. These were incurred in Callin’s name at a time when Mr Fujisawa had no reasonable belief that Callin would pay, he ruled.
Mr Fujisawa did not file a statement of defence. He did not appear in court to defend the claim.
Callin Auto New Zealand Ltd v. Fujisawa – High Court (21.05.25)