Couple told to pay security deposit to cover costs or long running case will be struck out

Couple told to pay security deposit to cover costs or long running case will be struck out

A couple who are suing  over claims for damages following the sale of the business and assets of the Seaview Lodge have been told by the Supreme Court that they must provide a security payment for the defendant’s costs by July 26 or the case will be struck out.

Franz and Gudren Strauss are suing Dianne Warner, who acted as receiver, over the sale.

Franz Strauss, a chef, has alleged that Warner unlawfully sold the plaintiffs’ private assets and failed to provide inventories of items sold.

He also alleged that the defendant interfered with the inspection of documents process ordered by the Court and that she has misled the Court.

The Strausses bought the lodge in Nuku’alofa in 2006.

Warner had asked the court to have the action struck out.

The case began in August 2016. A writ was served on warner and other defendants, but the case has not been set down for a hearing.

The Strauss’s were ordered by the court on 22 June 2017 to pay security for costs before the matter could proceed.

Last year the plaintiffs lost an application for leave to appeal Mr Justice Paulsen’s refusal  to set aside  the   Order.

The Strausses have said they want to continue with the case and are considering filing fresh proceedings to obtain information they consider the defendant is not disclosing to them that would support their claim.

The plaintiffs also intend to seek a variation of the Order.  The judge said they were entitled to apply to vary the Order at any time

Lord Chief Justice Paulsen said the plaintiffs must be given more time to comply with the earlier court order or obtain a variation of it so the case can proceed.

The main points

  • A couple who are suing  over claims for damages following the sale of the business and assets of the Seaview Lodge have been told by the Supreme Court that they must provide a security payment for the defendant’s costs by July 26 or the case will be struck out.
  • Franz and Gudren Strauss are suing Dianne Warner, who acted as receiver, over the sale.

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