GENERAL MARINE SERVICES LTD V THE SHIP "LUANA"

[2012] NZCA 374, Court of Appeal of New Zealand, Arnold, Randerson and White JJ, 2 August 2012

Arrest - Setting aside caveat against release from arrest - Cost of proceedings disproportionate to amount claimed - Vexatious proceedings

This was the appeal against a first instance judgment in which the judge had set aside the caveat against release from arrest of the yacht Luana lodged by GMS. GMS claimed to be owed NZ$2,189.46 for the supply of fittings for her construction. Boat 90, which was constructing Luana for YW, had gone into insolvent liquidation and the liquidators had given possession of the yacht to YW. YW was the owner of the yacht but Boat 90 had a lien on her for unpaid purchase monies. Boat 90 was owned by S, also in receivership. Before Luana could be shipped to Perth, a warrant was issued for her arrest by Boat 93, another subsidiary of S. YW and the other subsidiary entered into an interim agreement for the release of the arrest. Before the release, a caveat was filed by GMS but set aside by the judge at first instance, essentially because the claims were against the persons owning Luana and not against Luana, and because the costs of arrest were entirely disproportionate to the small claim.