Published 21 May 2019
Summary judgment — unpaid invoices — termination of contract — corruption — District Court Rules 2014, r 12.2. The plaintiff, a Japanese based company, sought summary judgment for a claim of US$21,833.30 from the defendant for services rendered. The defendant did not dispute the debt. However, due to two criminal investigations into corruption being undertaken by the UK Serious Fraud Office and the French Parquet National Financial, the defendant's parent company had stopped paying all third party contractors and had terminated the contract with the plaintiff. The Judge noted that this was an unusual situation; however it was determined that there was no defence to the claim. As the contract provided that upon cancellation all monies are to be paid in full, the Judge awarded summary judgment to the plaintiff as follows: (i) $USD21,833.30 converted to NZ dollars as at the date of judgment; (ii) Interest at 5% in the sum of $USD1,718.39 as at the date of judgment. The plaintiff also sought costs with a 50 per cent uplift, as the defendant had no meritorious basis for opposition in Court. However, the Judge noted this was a complicated case and the decision to refuse payment was ultimately made by the parent company, not the defendant. Costs were awarded on a 2B basis to be paid to the plaintiff. Judgment Date: 23 July 2018.
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