You've got mail ... and you're bankrupt
A High Court judge has allowed financial services provider Asteron Life Ltd to serve a bankruptcy notice on a man in South Africa by email, provided it receives a “read reply.”
Asteron, formerly Royal and SunAlliance, had already received judgement against Pieter Anton Franck.
Court permission is required to serve bankruptcy papers on a debtor overseas.
As Asteron had been frustrated in obtaining an address for service, it asked for permission to serve the overseas notice by email.
Justice Denis Clifford heard in the High Court at Masterton that after a number of unsuccessful attempts to serve papers on Mr Franck, Asteron obtained an order for substituted service by pinning the documents to the door of the Francks’ address in the town.
That resulted in a telephone call from Mr Franck’s wife, who said her husband was in South Africa. She provided his email address, but said she did not know his telephone number or address.
Asteron then discovered that the Masterton house had been sold.
The firm’s solicitor contacted Mr Franck by email, warning him of likely bankruptcy proceedings. Mr Franck responded but did not provide an address for service, as requested.
The solicitor told the judge that service at a physical address would be difficult, if not impossible.
On the other hand, Mr Franck always replied quickly to his emails.
Justice Clifford said that reasonable efforts had been made to serve the papers on Mr Franck who had ignored a request to provide an address for service.
Between January and April he had replied promptly to six emails.
The judge said that even acknowledging the significance of bankruptcy proceedings, he was of the view that service by email to Mr Franck would bring the matter to his attention in South Africa.
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Comments and questions1
We have been instructed by Mr Franck to write a response, on his behalf to this article in order to provide context to the Court proceedings.
Mr Franck was one of New Zealand’s most highly regarded and successful financial advisers for nearly a decade having received many awards and testimonials from many sources. He was asked to become a preferred advisor for this New Zealand based company during which time he represented them, their products and their services to a high standard. Unfortunately in early 2008 he developed a serious heart condition which led him to make the decision to relocate to South Africa. This event led to a breakdown of his relationship with his employment and resulted in him leaving New Zealand with a number of contractual issues relating to his preferred advisor role remaining unresolved.
Upon returning to South Africa other personal issues developed and Mr Franck’s health deteriorated further to a stage where he was required to spend significant time in hospital. Unfortunately it was during this difficult time that proceedings were commenced against him in New Zealand and he was ultimately adjudicated bankrupt. It was due to Mr Franck’s health difficulties that he was unable to take steps to defend those proceedings despite the allegations being unfounded.
Mr Franck stands by his ability and integrity, and has many referees who are willing to say the same. He hopes that this offers clarity to the situation and that it will now be possible for him to move forward in his life and his career.
- Turner Hopkins, Solicitors, Takapuna, Auckland.