Published 03 September 2019
Reserved decision — summary judgment — stay of proceedings — contractual dispute — set off — arbitration — Arbitration Act 1996, sch 1 art 8 — Colebrook v Okarahia Downs Ltd [2019] NZHC 241— District Court ACT 2016, s 74 — Browns Real Estate Limited v Grant Lakes Properties Limited [2010] NZCA 425 — Zurich Australian Insurance Limited v Cognition Education Limited [2014] NZSC 188. The plaintiff sought summary judgment against the defendants over money owed under a sharemilking contract. The plaintiff was a sharemilker for the defendants and had a contract whereby he received 50 per cent of the milk payments. The defendants withheld $96,550.51 in payments, claiming the plaintiff left the property in very poor condition and applied for the summary judgment application to be stayed on the basis they have a counterclaim against the milk payment which exceeds the amount of the milk payment (claiming losses that will exceed $260,000). In determining whether the application should be stayed, the Judge considered the language of the agreement (which expressly stated "the owner has no right of set off in relation to the sharemilker's agreed percentage), recent case law, and article 8 of the Arbitration Act and held that there is no dispute with the amount of milk payment due to the plaintiff under the agreement (which the parties have agreed there is no right of set off) and, therefore, there is no dispute to be referred to arbitration. For that reason, the application for a stay was dismissed and the Judge set down a date for the summary judgment application to be heard. Costs were reserved in favour of the plaintiff, but not fixed until the summary judgment application is heard. Judgment Date: 14 June 2019.
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