Court of Appeal upholds decision to remove New Zealand Liquidator

By Lagi Keresoma

Apia, Samoa – 29 November 2023: The Court of Appeal has upheld Chief Justice Satiu Simativa Perese’s ruling of April 2023 of removing a New Zealand liquidator David Ross Peterson from handling matters pertaining to the Progressive Insurance Company.

The petition to remove Peterson was filed by the Chan Mow & Company Ltd.

Peterson appealed Chief Justice Perese’s decision.

After perusing all evidence from the original trial, the appeal was denied.

The Case
In September 2021, the Samoan based Progressive Insurance Company after a resolution of its shareholder, the Decatur Corporation was liquidated. Decatur is a Marshall Island company.

The only remaining director of Progressive Insurance at the time was a Samoan lawyer Murray Drake whom Peterson is well acquainted with as they have done business together for many years.

Peterson was recruited by Decatur Corporation to handle the Progressive Insurance liquidation. However, the Chan Mow & Company Ltd who was a creditor at Progressive Insurance did not want Peterson.

“Chan Mow & Company Ltd, a substantial creditor of Progressive was concerned of Mr Peterson’s impartiality and as a result of these concerns, sought Peterson’s removal as a liquidator.”

On 21 April 2023, Chief Justice Perese removed Peterson and replaced him with Neal Jackson and Natalie Burret.

The Court of Appeal noted that the “key issue in the case is factual, whether Mr. Peterson’s connection with Mr. Drake and his family together with his conduct of a liquidation and litigation cast a shadow over his impartiality that is sufficient to warrant his removal.”

The establishment & liquidation of Progressive Insurance
The Drakes and Chan Mow established the Chandra Finance Ltd in 1984with two thirds owned by Chan Mow and one third by Ruby Drake.

In 1993, Progressive Insurance Ltd was formed and Chandra Finance indirectly owned major shares in the Progressive Insurance and more people joined later.

In 2016, Chandra Finance was the only remaining shareholder of Progressive Insurance with Murray Drake and Patrick Chan Mow as the directors.

In July 2016, Patrick Chan Mow ceased being a director which leaves Drake and Greg Duffy who operated the American Samoa Progressive Insurance office as the remaining directors.

In 2021, Duffy ceased being a director and Drake remained the sole director of Progressive Insurance when it was liquidated.

Drake brought in Peterson to handle the liquidation only to be removed by the Supreme Court in April 2023.