Bankruptcy battle again for lawyer
The Ministry of Justice has filed, for the second time, to bankrupt a Palmerston North lawyer, who is himself fighting the ministry to get a legal aid contract.
The legal action is just the latest in a string of battles between Jeremy Mcguire and the ministry.
The ministry first sought to bankrupt Mcguire in April 2017, in a bid to recoup more than $31,000 in court costs and interest from failed litigation five years ago.
The costs came from attempts Mcguire made to have his legal aid contract restored after it was withdrawn in 2010.
That legal action is still ongoing, with Mcguire awaiting a Supreme Court decision on the matter.
He managed to stave off the 2017 bankruptcy proceeding by paying $23,441 in May.
But a High Court judgment recently released shows the ministry is again taking bankruptcy proceedings against Mcguire.
According to the judgment from High Court associate judge Justice Kenneth Johnston, the ministry is seeking payment of $7103.50 in court costs, which were ordered in June 2017.
A bankruptcy notice was issued on July 19, and served on Mcguire on July 30.
However, the ministry did not serve Mcguire a certified copy of the judgment debt at the same time – a breach of High Court rules.
The ministry did fix the error later that day, emailing Mcguire a copy of the judgment.
Mcguire said he did not read the judgment until some time afterwards due to other commitments.
The judge described the omission by the ministry as ‘‘surprising’’, but not fatal.
In bankruptcy cases, the potential bankruptee has 10 working days to file an application to set the notice aside.
For Mcguire, he had until August 13 to file his application. He filed it on August 14, meaning he committed an act of bankruptcy.
The judge said the court could not ‘‘undo’’ the act, meaning the ministry was able to commence bankruptcy proceedings, and Mcguire can still defend himself.