Luigi Pizza business seized under writ

Press, 9 February 1983, Page 1

Luigi Pizza business seized under writ

Accountants acting on a type of writ never before executed in New Zealand moved in and took possession yesterday afternoon of the assets of a company running three Christchurch pizza shops and a pizza factory.

The accountants went first to the registered office of Quality Pizzas. Ltd, in Victoria Street and took possession of certain records of the company.

They then moved on to the three' shops which trade under the name of Luigi’s Pizzas, in Merivale. Ferry Road, and Barrington Street, and the factory in Bishopdale that supplies them.

After explaining the writ to baffled employees at the shops, who were unaware of what was going to happen until a few minutes beforehand, the accountants took possession of the assets, including cash in the till, installed an employee to w’atch over the ’ shops' activities, and set about getting the locks changed on the doors.

The shops are continuing to trade. The accountants were executing a writ of sequestration, issued on Monday by Mr Justice Roper in the High Court. Although such writs have been contemplated in two actions in New Zealand, this is the first to be executed.

It was issued on the application of the Canterbury Hotel Workers’ Union and marks the culmination of a long-running confrontation between the union and the director of Quality Pizzas, Mr Ray Hyndman.’ Writs of sequestration are sought and issued only as a last resort. In this case, Quality Pizzas has been cited for showing “contumacious disregard" for an order of

the Arbitration Court made last year. The case began more than a year ago when the union sought a list of Quality Pizzas' employees as required under the ’ award and the Industrial Relations Act. Mr Hyndman, who has proclaimed his dislike of unions and the industrial relations law in strong terms, refused to supply the list. The union complained to the Arbitration Court which, in February last year, fined the firm $lOO. The fine was paid, but Mr Hyndman still refused to supply a list of names to the union and on a second complaint, the Arbitration Court fined Quality Pizzas the maximum of $5OO. Chief Judge Horn of the Arbitration Court wrote then: “The Industrial Relations Act is a statute validly passed by the Parliament of this country and is part of our law ... The only way whereby a person such as the defendant company may be exempted from that law is by seeking an amendment to the law, not a matter which this court can concern itself with."

Mr Hyndman refused to pay that fine and continued to refuse to supply the list of names and the union then applied last November to the High Court for the writ of sequestration, which was issued by Mr Justice Roper on Monday.

In his judgment, his Honour said: "The respondent has not complied (with the Arbitration Court orders) and judging by Mr Hyndman’s attitude at the Arbitration Court hearing, voluntary compliance seems unlikely

... Fines of $lOO and the maximum of $5OO by the Arbitration Court have had no effect on the respondent’s resolve not to supply the information sought by the union."

Mr Hyndman was not represented at the High Court hearing.

The writ was executed yesterday by Mr Tony Lewis of Barr, Burgess, and Stewart, chartered accountants. Mr Lewis said that he was under the direction of the High Court order, not the union. He emphasised that he was "taking possession" of the firm's assets, not taking over the management of it. He is not responsible for the payment of debts or wages, although if the matter dragged on he might have to make some arrangements about continued managership, payment of employees, and so on. It was not the intention to close the firm and the shops would continue to trade with the same employees. “I hope that Mr Hyndman acts quickly, to clear this matter up,” Mr Lewis said.

To do that now, the company must first supply the list of names to the union, settle all matters with the Arbitration Court, and then apply to the High Court for the writ to be discharged. By coincidence, the Arbitration Court is sitting in

Christchurch this week. Mr Lewis said that the matter could be cleared in two days if Mr Hyndman co-operated.

In the meantime, the firm's takings would be held in a trust account operated by Mr Lewis. Yesterday's takings were collected at midnight.

The Hotel Workers' Union representative dealing with the matter, Mr Rod Lingard. said that the union had never been forced to go to such lengths before. Most employers, he said, were prepared to abide by the law. Mr Hyndman was yesterday on holiday fishing on the West Coast. He cut short the trip and was last evening driving back to Christchurch. A spokesman for him in Christchurch said that Mr Hyndman felt that the fact that such an event could occur in New Zealand was very serious.

“He is simply seeking to preserve the freedom, rights, and privacy requested by his staff."

The spokesman said Mr Hyndman was taking legal advice to determine his next step which would be known to all today.