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Body Corporate 68792 v Cudby & Meade Limited [2016] NZDC 3827

Published 01 August 2016

Judgment on admission — District Court Rules 2014, r 15.12 — Sealord Charters v The Ship “Efim Gorbenko” & Ors HC Wellington, AD 369, HC Nelson, AD 12/95, 9 December 1996. Judgment was entered against the defendant in the sum of $116,854.36 which included agreed costs of $4,500. Additional costs plus disbursements of $1,200 were awarded for this application. The proceedings related to an application for an order entering judgment on admission pursuant to r 15.12(1) which states that “if a party admits facts (in the party’s pleadings or otherwise), any other party to the proceedings may apply to the Court for any judgment or order upon those admissions…without waiting for the determination of any other question between the parties.” The Court may exercise its discretion under that rule. The parties had entered into an agreement requiring a payment to the plaintiff of $94,500 together with 5% interest by 24 December 2015 (time being of the essence). The payment was yet to be made. A clause in that agreement stated that the defendant would supply, in addition, an admission of claim in the amount of $116,854.36 to the defendant. It was alleged the defendant made material variations to the agreement after it was signed that are not assented to by the plaintiff. The plaintiff submitted that Clause 8 of the settlement agreement was itself an admission of terms. “Efim Gorbenko”, where Doogue J accepted an admission in agreement was sufficient to found an application for entry of judgment, was cited in support. Tuohy DCJ accepted this case was stronger than Efim Gorbenko because “not only was there a clear agreement to pay, there was a clear promise to execute an admission of claim before payment in order to enable the plaintiff to obtain judgment on its claim if payment was not made.” There was nothing to suggest the plaintiff had been in breach of its obligations, which might have altered exercise of the Court’s discretion.

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