127 Hobson Street Limited and Sunil Govind Parbhu v Honey Bees Preschool Limited and Jason James  - SC 40/2019

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Summary

Civil Appeal – Penalty clause – Whether the Court of Appeal erred in finding that the indemnity clause did not offend the prohibition against penalties.

Result

A  Leave to appeal is granted (127 Hobson Street Ltd v Honey Bees Preschool Ltd [2019] NZCA 122).
B  The approved ground is whether the Court of Appeal was correct to dismiss the applicants’ appeal to that Court and, in particular, whether the Court was correct to conclude that the indemnity clause did not offend the prohibition against penalties.
27 June 2019
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A The appeal is dismissed.
B The appellants must pay costs of $25,000 plus usual disbursements to the respondents.
5 June 2020

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Additional Information

Winkelmann CJ,  O'Regan, Ellen France,Williams and Arnold JJ