Building owner fails in costs bid against NZ Mint

New Zealand Mint's building at 48 Greys Avenue, central Auckland.

The owner of an inner-city Auckland building has failed to get court costs out of one its tenants, New Zealand Mint.

The issue is just one part of a dispute between Greys Avenue Investments and New Zealand Mint, a coin minter and bullion dealer.

Greys Avenue Investments, which owns a building on the Auckland road of the same name, was in May served with a demand to pay $322,414 by New Zealand Mint.

That was because the company had guaranteed certain obligations of New Zealand Mint's former owner Gary McNabb, whose interests sold that business to its present owner in 2012.

When McNabb was declared bankrupt earlier this year, New Zealand Mint chased Greys Avenue Investments for $322,414 payable under a loan agreement that the company had guaranteed.

After New Zealand Mint served Greys Avenue Investments with a demand for the sum, the building owner applied to the High Court at Auckland to set it aside.

Ahead of the hearing, New Zealand Mint withdrew the demand because the debt was largely paid but both sides could not agree on court costs.

Greys Avenue Investments sought $17,533 in costs while New Zealand Mint said none should be payable.

In his decision on the matter, Associate Judge Roger Bell said costs should go to whichever party succeeded.

He said New Zealand Mint withdrawing its demand did not support any inference the company had failed.

"To the contrary it has been paid and its position as a creditor for the debt in demand has been upheld. In the end none of the matters that Greys Avenue Investments Ltd relies on shows that New Zealand Mint Ltd has lost.

There is therefore no reason to award costs against New Zealand Mint Ltd," the judge said.

Greys Avenue Investments is directed by Auckland businessman Aaron Coupe.
Coupe, in matters unrelated to the company, last month pleaded guilty to charges for running a business while bankrupt and concealing income from authorities.

Coupe, 38, has not been convicted on the seven charges he admitted and is due to be sentenced in the Auckland District Court later this year.