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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22166
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Have contract with a company in Auckland earthmoving owes seventy

Customer Question

Have contract with a company in Auckland earthmoving owes seventy thousand and won't pay three months over what can I do
Submitted: 5 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 5 months ago.
If this company does not have any defence to your claim, you can deal with this in two ways. The first and more direct, would be to serve a statutory demand under the Companies Act, which requires them to make payment within 15 working days of receipt of the statutory demand, or face a liquidation application in the High Court. If they have a genuine defence you cannot use this procedure. But if they are just taking their time to pay, then this procedure is often effective. The problem could be that they are insolvent, and you would need to decide whether it is worth spending the money to have them placed into liquidation. That sometimes has advantages if you can investigate whether the company has been trading recklessly, making the directors personally liable.If they maintain there is a defence over the work then you want to consider using a construction claim under the Construction Contracts Act. In this procedure you refer the claim to a construction adjudication, and the procedure is quite fast. Out of this you would get an order which you can then enforce as if it were a court judgment.With both options I would suggest you use your lawyer to draft the statutory demand or the construction claim, but if you are confident there is nothing to stop you doing this yourself
Customer: replied 5 months ago.
Can you use a leins act on subdivision
Expert:  Chris The Lawyer replied 5 months ago.
You cannot lodge a charging order until you have a judgment, or unless your contract permits the use of a caveat to protect your claim. You cannot lodge a lien on the subdivision however.

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