MTF
31/10/2014 15:49
GENERAL
REL: 1549 HRS Motor Trade Finances Limited
GENERAL: MTF: Commerce Commission abandons Sportzone case cross-appeal
The Commerce Commission has abandoned its cross-appeal in the Sportzone case.
The Commission's cross-appeal had been against that part of the High Court's
27 September 2013 judgment (the Liability Judgment) which rejected the
Commission's allegations that MTF and one of its shareholders, Sportzone
Motorcycles Limited (now in liquidation), had breached the Fair Trading Act
1986 in relation to establishment and account maintenance fees charged in 39
loan contracts originated by Sportzone between 2005 and 2008.
The Commission had not filed a cross-appeal against another part of the
Liability Judgment, where the High Court rejected a separate allegation by
the Commission that MTF and Sportzone had breached disclosure requirements
under the Credit Contracts and Consumer Finance Act 2003 (CCCFA).
The appeals by MTF and Sportzone are proceeding against the remaining part of
the Liability Judgment, that various fees charged in the 39 loans were
unreasonable under the CCCFA, and the High Court's subsequent judgment of 9
October 2014 in relation to the amount by which the fees are said to be
unreasonable (the Quantification Judgment).
In addition to abandoning its cross-appeal, the Commission has abandoned its
notice that it would seek to support an aspect of the Quantification Judgment
on an alleged ground not relied on by the High Court Judge.
The hearing of the appeals by MTF and Sportzone in the Court of Appeal is set
down for 19-20 November 2014.
As that matter remains before the Courts, MTF will not be making any further
comment at this stage.
End CA:00257095 For:MTF Type:GENERAL Time:2014-10-31 15:49:31
