Published 23 December 2008
Associate Judge Hannah Sargisson has rejected a novel request by property developer Andrew Krukziener for judgment creditor Hanover Finance Ltd to provide $15,000 security for costs in the company’s pursuit of bankruptcy proceedings against him.
The judge heard the application by counsel Rob Hucker on 18 December and issued her reasons for rejecting the request today.
Hanover Finance has judgment against Mr Krukziener for $4.1 million, which is now beyond the appeal period. Mr Krukziener claims Hanover will owe him more than he owes it – both sums by now in the range of $6 million – once he wins an appeal (against a decision not to set aside the bankruptcy notice) & counter-claim.
But Associate Judge Sargisson said Mr Hucker had been unable to provide any legal authority for a creditor to provide security for costs, nor why the judgment debt itself shouldn’t be treated as effective security.
And she said Mr Krukziener had done his cause no favours by still not settling his appeal case, 4 months after judgment was handed down, and hadn’t applied for a hearing date: “If ever there was a case where the court should order security for costs because of an appeal, this is not it.”
Mr Krukziener had also raised the effect on himself & his family if he was adjudicated bankrupt and couldn’t operate as a developer. Said the judge: “While the effect of adjudication on a debtor & the debtor’s family can be harsh, the effect on the debtor’s ability to operate in business is precisely the effect an order of adjudication is intended to have as a matter of public policy.”
The judge said the debt payable by Mr Krukziener was a liquidated sum payable immediately, while his appeal & counter-claim were discretionary matters.
Mr Krukziener’s application to stay execution of the bankruptcy judgment is due to be heard on Tuesday 17 February.
18 December 2008: U: The names behind the action, the week to 21 December 2008, part 7, Krukziener & Hanover continue scrapping on way to February hearing
21 November 2008: U: The names behind the action, the week to 23 November 2008, part 4, 5 creditors support Krukziener against Hanover bankruptcy action
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Attribution: Judgment, story written by Bob Dey for this website.