Abstract:
Contribution has long been an interesting (and sometimes overlooked) area of law. When a person is being sued by or has been found liable to someone for causing loss or damage, the former may bring a contribution claim against a third party, asserting the third party is also liable for the loss or damage, and should contribute to the compensation. In March 2016, the Supreme Court handed down a landmark decision regarding contribution claims (Hotchin v New Zealand Guardian Trust Co Ltd [2016] NZSC 24). The Court held, by a 3:2 majority, that the contribution claims brought by Mr Hotchin, the principal of the failed finance company Hanover Finance Ltd, against the trustee for investors in Hanover Finance, should be allowed to continue. This decision is the latest development of a long legal battle among the Financial Markets Authority (FMA), the directors, and the two trustees.
