In our June 2015 update we reported on the Court of Appeal decision in which Mr Gilbert was held personally liable for body corporate levies, as a receiver of QSM Trustees Limited (QSMTL).  QSMTL owned units in a unit title complex.  The Body Corporate sought to exercise its statutory power and impose levies on Mr Gilbert personally, as receiver of QSMTL. 

The High Court found Mr Gilbert not personally liable. The Court of Appeal held that Mr Gilbert was personally liable and did not grant him relief from personal liability under section 32(7) of the Receiverships Act 1993 (Act). 

Leave was granted to Mr Gilbert to appeal on two questions:

  • Whether he was personally liable under section 32(5) of the Act to pay body corporate levies
  • Whether he had an arguable claim for relief from personal liability under section 32(7) of the Act.

In Gilbert & Anor v Body Corporate 162791 [2016] NZSC 61, the Supreme Court (in a split decision) affirmed the decision of the Court of Appeal.  The levies in question were due "under an agreement" per section 32(5) of the Act and the section 32(7) defence was not satisfied on the facts. 

See Court decision here.