Liquidator to quiz Securitibank head

Press, 29 August 1984, Page 41

Liquidator to quiz Securitibank head

PA Auckland The liquidator of Securitibank, Mr Harold Goodman, has won the right to question the former managing director of the company, Mr J.G. Russell, about certain issues surrounding its collapse in 1976. Mr Justice Barker, in a judgment in the High Court at Auckland, has granted Mr Goodman’s request to question Mr Russell. His Honour said that during the hearing Mr Russell’s counsel, Mr P.A. Fuscic, had said that forcing his client to spend a vast amount of time searching through Securitibank records was oppressive. His Honour said that although he acknowledged the interrogatories sought against Mr Russell were copious, Mr Fuscic’s submission could not prevail.

“Mr Russell was the managing director of Securiti-

bank at all material times,” he said. “Information known to me from over eight years experience with this liquidation indicates that he was the focal point in the organisation.” He said two matters might help Mr Russell. First, His Honour said, Mr Goodman, through counsel, had agreed to provide Mr Russell with reasonable facilities for inspection ,of all Securitibank records. The second matter concerned Mr Russell’s unsuccessful application for legal aid. His Honour said that should an application for legal aid be renewed he would point out, for the sake of the body considering the application, that “this is not an ordinary piece of litigation.” “I have no knowledge of Mr Russell’s financial posi-

tion, but the cost for any party answering interrogatories, conducting inspection and preparation for trial would be daunting,” he said. “Many months would be necessary for proper preparation for trial and, as I have indicated in earlier judgments, the trial itself, should it ever eventuate, will occupy many months of the Court’s time. “I therefore place these considerations before the Legal Aid Committee or Legal Aid Appeal Authority in respect of Mr Russell’s claim for legal aid in the Securitibank litigation.” He allowed the interrogatories, with minor amendments indicated, and said he looked forward to receiving a draft from counsel with the modifications made. The interrogatories are to be answered within 90 days of service of the sealed order.