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We act for the administrator of a Body Corporate who is collecting money for creditors of the Body Corporate. The Body Corporate was placed in administration because it was unable to pay Auckland Council and Fletcher Construction Company Ltd costs of $894,199.83 that the Weathertight Homes Tribunal ordered it pay.
The Body Corporate administrator issued a statutory demand against Marina Resort Ltd for its share of the costs as calculated according to its utility interest. Marina Resort Ltd refused to pay and argued that it had a counterclaim as a result of alleged breaches of fiduciary duty by the Body Corporate. The court found that Marina Resort Ltd was unable to show that there was a genuine and substantial dispute as to the existence of the debt unless it could obtain a judgment setting aside the costs order. The court thought it unlikely it would be able to obtain such an order. The dismissal of the application to set aside the statutory demand means that Marina Resort Ltd must pay its share to our client or be liquidated.