Paul Yarrow bankrupt
Yarrow asked for a significant reduction to be paid to Finnigan of $46,607.
A defendant in a long-running court battle involving Taranaki’s Yarrow Bakery has been awarded costs of more than $100,000 against its former co-owner.
Former Yarrows Group company accountant Michael Finnigan was awarded $100,350 by the High Court against former Yarrows Group director, Paul Yarrow.
The decision, released on Monday, October 2, is the result of an unsuccessful attempt by Yarrow in November to sue Finnigan for $91 million over the collapse of the company in 2008.
Justice Joe Williams struck out Yarrow’s claim in the earlier High Court decision and awarded Finnigan entitlement to costs, and security of costs, from the longrunning court proceedings.
Security for costs is kept in a court’s trust account to ensure they can be paid if a claim is unsuccessful.
Following the High Court decision Yarrow was judged bankrupt and the application for costs was handed to the Official Assignee, which consented to payment being made to Finnigan.
In the application Finnigan sought costs of $120,420 and $2540.80 in disbursements.
In response Yarrow submitted to the court that the bankruptcy was Finnigan’s fault.
Yarrow is the son of the late owner of the company, Noel Yarrow, and Finnigan was the former company’s accountant.
The pair had a close personal and business relationship before the Yarrow Group went into receivership.
At the time Finnigan held power of attorney for Yarrow.
When Yarrow took over the 90 per cent majority shareholding of the bakery conglomerate in 2006, he became reliant on Finnigan’s advice.
Later Yarrow claimed Finnigan defrauded him by withholding crucial information and led to him ultimately losing the entire value of his investment in the Yarrow Group.
He began proceedings against Finnigan in 2011 with an initial claim of $4 million personal loss, and $7m in foregone benefits, and later increased the total amount to $91m.
Yarrow had been unable to hire a lawyer, and instead represented himself, which meant a longer time period to prepare for the hearings.
As a result Yarrow asked the court for a significant reduction in the amount of costs to be paid to Finnigan of $46,607.
Justice Williams acknowledged Yarrow’s limited funds and legal expertise but also noted Yarrow had been given ‘‘numerous warnings’’ by the courts for delays in proceedings over the years.
Taking these factors into account Justice Williams settled on a sum of $100,350 legal fees, and disbursements, or court fees, to be paid to Finnigan through the Official Assignee.