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Lange v Lange [2021] NZCA 447 (7 September 2021)

Last Updated: 16 September 2021

IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA
CA693/2020
[2021] NZCA 447



BETWEEN

TERRY CECIL LANGE
Appellant


AND

DEBRA GISELLA LANGE
Respondent

Hearing:

19 August 2021

Court:

Miller, Gilbert and Collins JJ

Counsel:

J C LaHatte and JCR Cooper for Appellant
M R Walker and B B Gresson for Respondent

Judgment:

7 September 2021 at 11.30 am


JUDGMENT OF THE COURT

  1. The appeal against the decision refusing to set aside registration of the Australian judgment is dismissed.
  2. The stay pending hearing of this appeal expires on delivery of this judgment.
  1. Mr Lange must pay Ms Lange costs on a band A basis for a standard appeal, with usual disbursements. We certify for second counsel.

____________________________________________________________________

REASONS OF THE COURT

(Given by Miller J)

TABLE OF CONTENTS

The Australian judgment

Procedural history in New Zealand

The judgment was registrable and registered

No timely application to set aside registration

61 Setting aside registration

(1) This section specifies the only situations in which a New Zealand court in which an Australian judgment has been registered under section 57 may set aside the registration of the judgment.

(2) The New Zealand court must, on application by a liable person within the applicable period under subsection (3), set aside the registration of the judgment if satisfied that—

(a) the judgment was registered in contravention of this Act; or

(b) enforcement of the judgment would be contrary to public policy in New Zealand; or

(c) both of the following subparagraphs apply:

(i) the judgment was given in a proceeding the subject matter of which was immovable property, or was given in a proceeding in rem the subject matter of which was movable property; and

(ii) that property was, at the time of the proceeding in the original court or tribunal, not situated in Australia.

(3) An application under subsection (2) must be made—

(a) within 30 working days of the New Zealand court after the day on which the liable person was given notice of registration under section 62; or

(b) if the liable person, before or after the end of the period in paragraph (a), applies to the New Zealand court for a longer period—within any longer period the New Zealand court considers appropriate.

The High Court judgment

[47] There is another factor, albeit of secondary importance. In this case, as indicated, the respondents are out of time to apply to set aside registration of the judgment. The application for leave/extension of time to oppose registration of the Western Australian judgment, which I was willing to treat as an application for an extension of time to apply to set aside registration of the judgment under s 61(3)(b), was only filed on 2 September 2020. Even after service of the sale order in March 2020 and a visit from the Court bailiff in May 2020, the respondents delayed from August/September 2019 until July 2020 (even assuming the subsequent delay reflected a misunderstanding as to the nature of the application required). They have not provided an adequate explanation for their delay. In the particular circumstances of this case, including the adverse findings of the Western Australian Court, I would have been reluctant to grant an extension of time under s 61(3)(b) if Mr LaHatte had not sought to set aside registration of the judgment now. ...

[52] I do not consider that enforcement of the judgment would give rise to a miscarriage of justice. Indeed, balancing the parties’ interests, a sale order is in the interests of justice. The prejudice to Ms Lange caused by delay in receiving the benefit of the judgment debt outweighs the prejudice to Mr Lange and Ms Lange-Tupe resulting from sale of the Kaitaia property. Ms Lange’s Lockridge property is at risk because Mr Lange has not complied with the Western Australian Court order to pay off its mortgage.

[53] Mr Lange lives on and farms the Kaitaia property but any prejudice to him resulting from sale is outweighed by Ms Lange’s interests. Also, Mr LaHatte’s claim that the property is now worth less than the debt is not supported by any compelling evidence. Nor is the somewhat inconsistent claim that Mr Lange will lose the benefit of refurbishments and renovations he has spent his own time and money to complete on the property.

[54] In terms of prejudice to Ms Lange-Tupe, I accept the Kaitaia property is her main asset and the farm is her main source of income even though she does not live there. But Moncrieff J found that the transfer of the Kaitaia property and the deed of forgiveness in favour of Ms Lange-Tupe were dispositions to defeat Ms Lange’s claim intentionally by Mr Lange acting with Ms Lange-Tupe. Even leaving aside the finding that they acted in concert, Ms Lange-Tupe’s prejudice is losing the benefit of Mr Lange’s “gift”, which is outweighed by Ms Lange’s interests.

Appeal to this Court permitted, and stay granted

The appeal

What this appeal is not about

The immovable property exception to registration of an Australian judgment

7.72 The justification for this exception is that the court is merely acting on the conscience of the defendant subject to the court’s personal jurisdiction. Instead of telling the foreign legal system who owns the land, the court is telling the defendant what they must do to comply with their personal obligation — on pain of contempt, but not eviction. ...

7.73 Although the in personam exception has been criticised for permitting the court to do indirectly what it may not do directly, it is sound in principle and justified in policy. It reflects a fundamental distinction between a personal order against a defendant properly subject to the jurisdiction and an order that purports to determine the legal ownership of land in a way that will (and must necessarily) be good against the whole world. An order in personam may have the practical effect of conferring title to the plaintiff (where for example the defendant complies with in order to effect a conveyance) but that does not mean the court is interfering with the sovereign jurisdiction of the foreign court.

The Kaitaia property was not the subject matter of the proceeding

Injustice to Ms Lange-Tupe

Disposition


Solicitors:
Ord Legal, Wellington for Appellant
Todd & Walker, Queenstown for Respondent


[1] Lange v Lange [2019] FCWA 128 [Western Australian judgment].

[2] At [108].

[3] At [120].

[4] At [6] and [58].

[5] Trans-Tasman Proceedings Act 2010 [TTPA], s 61(2)(c).

[6] Western Australian judgment, above n 1, at [121]–[122].

[7] At [156].

[8] At [220(4)(a)].

[9] At [220(1)].

[10] At [220(4)(c)].

[11] TTPA, s 63(1).

[12] Section 57(1).

[13] Lange v Lange [2020] NZHC 2560, (2020) 25 PRNZ 583 [High Court decision] at [24].

[14] At [25].

[15] At [27].

[16] At [28]–[29], citing LFDB v SM [2017] FCAFC 178, (2017) 256 FCR 218 at [36]–[37] and [43].

[17] At [30], citing Lane v Questnet Ltd [2009] NZCA 578, [2010] NZAR 210 at [47].

[18] At [31].

[19] At [32].

[20] At [43].

[21] At [44].

[22] Property (Relationships) Act 1976, s 7(1).

[23] High Court decision, above n 13, at [47].

[24] Lange v Lange [2020] NZHC 3151 [High Court leave decision].

[25] At [25].

[26] Lange v Lange [2021] NZCA 104 at [27].

[27] At [29]–[30].

[28] It appeared Mr Lange would argue hardship on his own account, but no such argument was advanced before us.

[29] It has been noted that courts do not invariably take a symmetrical approach to assuming and recognising jurisdiction: Jack Wass “The Court’s In Personam Jurisdiction in Cases Involving Foreign Land” (2014) 63 ICLQ 103 at 126.

[30] David Goddard and Campbell McLachlan “Private International Law: litigating in the trans‑Tasman context and beyond” (paper presented to the New Zealand Law Society Seminar, August 2012) 1 at 5.4.

[31] Trans-Tasman Working Group Trans-Tasman Court Proceedings and Regulatory Enforcement (December 2006). A number of the examples used in the report concern relationship property.

[32] Property (Relationships) Act, s 7(1).

[33] Reeves v One World Challenge LLC [2005] NZCA 314; [2006] 2 NZLR 184 (CA) at [67]. See also Maria Hook and Jack Wass The Conflict of Laws in New Zealand (LexisNexis, Wellington, 2020) at [5.254]–[5.267]. It ought to be unlikely that an Australian judgment would itself be contrary to public policy in this narrow sense, but the TTPA envisages that there may be circumstances in which its registration in New Zealand would become so.

[34] British South Africa Co v Companhia de Moçambique [1893] UKLawRpAC 53; [1893] AC 602 (HL). See also Hook and Wass, above n 33, at [7.63].

[35] Christie v Foster [2019] NZCA 623, [2020] 2 NZLR 238 at [74].

[36] Hook and Wass, above n 33, at [7.85], cf Griggs Group Ltd v Evans [2004] EWHC 1088, [2005] Ch 153.

[37] Hook and Wass, above n 33 (emphasis in original).

[38] Christie v Foster, above n 35.

[39] At [82].

[40] At [87].

[41] TTPA, s 61(c)(i).

[42] McCormac v Gardner [1937] NZGazLawRp 71; [1937] NZLR 517 (HC).

[43] Gordon Pacific Developments Pty Ltd v Conlon [1993] 3 NZLR 760 (HC)

[44] TTPA, s 60.


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