| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2011] NZERA Christchurch 184 |
| Hearing date | 23 Aug 2011 |
| Determination date | 23 November 2011 |
| Member | P Cheyne |
| Representation | J Smith ; no appearance ; J Moran (for party seeking to be added) |
| Location | Christchurch |
| Parties | Mills v Metro Floor Canterbury (2002) Ltd (in liquidation) and Anor |
| Other Parties | MetroFloor Contracting Ltd (party seeking to be added) |
| Summary | PRACTICE AND PROCEDURE – Application to join party – Applicant unsuccessfully attempted to enforce Authority determination against respondent – Applicant applied to District Court (“DC”) for order substituting respondent for new company – Authority served applicant’s DC application on both companies – Applicant sought to reopen matter for purposes of joining new company to proceedings – Respondent shareholder (“M”) claimed had advice that old company insolvent and had to cease trading – M formed new company and purchased respondent’s assets – Applicant claimed respondent delayed dealing with Authority while transferred assets to new company in order to avoid grievance and compensation award – M claimed purpose of scheme not to defeat applicant’s claims but to manage debts – Authority found appeared all or most staff transferred from respondent to new company and new company continued to use same premises, phone number and website – Found respondent never informed Authority or applicant about transfer of respondent’s assets to new company even though occurred during investigation – Found applicant unaffected by sale of assets to new company as applicant’s claim always ranked behind secured creditors – Found not proper use of Authority’s power to place applicant in better position vis-�-vis other creditors of respondent by joining new company as party to proceedings – Found sale of assets to new company not sham – Application to join party declined |
| Result | Application dismissed ; Costs reserved |
| Main Category | Practice & Procedure |
| Statutes | ERA s157(3);ERA s161;ERA s162;ERA s221;ERA Second Schedule cl4;Companies Act 1993 |
| Cases Cited | Hardy v Scoopy's Ice Cream Parlour (Whangarei) Ltd unreported, R Monaghan, 12 October 2006, AA 319/06;Square 1 Service Group Ltd v Butler [1994] ERNZ 667 |
| Number of Pages | 8 |
| PDF File Link: | 2011_NZERA_Christchurch_184.pdf [pdf 41 KB] |