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Tansley v Taylor [2020] NZDC 18284

Published 06 October 2021

Costs — indemnity costs — freezing order — family trust — third party costs — damages — undertaking for damages — High Court Rules 2016, r 32.2(5) — District Court Rules 2014, r 7.46 — McGechan on Procedure, HR32.4.02(b). The Court had previously discharged a freezing order obtained by the applicant against a bank account operated by a family trust, of which the respondent was a beneficiary. The Court had accepted the trustees' submissions that the respondent had no vested interest in the trust that could be subject of a freezing order. The trustees then applied for costs. The relevant District Court and High Court rules required an applicant for a freezing order to file an undertaking for damages to parties that have sustained damage from the undertaking. Legal commentary likewise stated that costs incurred by a third party from a failed freezing order are to be compensated with damages. On the evidence, the Court was satisfied that it had not been appropriate to make a freezing order on the bank account, and ordered that the trustees be awarded the costs that they incurred in seeking the discharge of the freezing order. Judgment Date: 14 September 2020.

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