High Court bins developer’s $14m damages claim

2022-09-24 - GUY WILLIAMS PIJF court reporter

A $14 MILLION claim for damages by a Queenstown property developer against a Speargrass Flat couple he accused of extortion has been thrown out in the High Court.

Chris Meehan company Waterfall Park Developments brought the claim against James and Rebecca Hadley last year, claiming it suffered losses as a result of the couple’s ‘‘persistent and unreasonable’’ opposition to its plans for residential development on Ayrburn Farm, near Lake Hayes.

In his decision, publicly released this week, Justice Gerald Nation said the proceedings amounted to a ‘‘misuse of the court’s process’’.

The developer’s ulterior motive was to deter the Hadleys from participating in three other related court proceedings by imposing on them the ‘‘burden and costs’’ of having to defend the claim.

Waterfall Park Developments counsel Mike Colson said the Hadleys had consistently opposed its development plans for part of the land.

They had taken it to court over a row of trees it had planted, made submissions against its subdivision application, and opposed its court appeals over the land’s zoning, the tree planting and the subdivision.

Those ‘‘persistent and unreasonable’’ actions had cost the company the opportunity to start its development in June last year, Mr Colson said.

The company applied to present as evidence confidential communications during court mediation and subsequent settlement negotiations with the couple, both of which had broken down last year.

In a supporting affidavit, Mr Meehan said the Hadleys’ conduct through those communications amounted to ‘‘extortion or blackmail’’, and their motive was to ‘‘extract a commercial benefit’’ from the company.

Justice Nation said the Hadleys’ opposition was not ‘‘unreasonable and persistent’’, nor had the couple acted in bad faith during mediation and settlement negotiations.

He struck out two separate claims for damages, totalling $14.36 million, and refused the evidence application.

The decision is the latest round

TWIZEL OTEMATATA RANFURLY OAMARU PALMERSTON

Fine, light E. 17° at 3pm

Fine, light NE. 17° at 3pm

Fine, light E. 17.5° at 3pm

Partly cloudy, light E. 11° at 3pm Fine, mod NE. 14° at 3pm in a protracted and complex legal dispute between the Hadleys and Mr Meehan, whose companies own the historic Ayrburn Farm and neighbouring Waterfall Park properties.

The couple took Waterfall Park Developments to the Environment Court in 2020 over a 500mlong row of trees it had planted along a boundary of Ayrburn Farm.

They argued the trees would adversely affect the adjacent Queenstown Trail, and their real purpose was to screen planned residential development, not as a farming shelterbelt as the company claimed.

The court found the tree planting was unlawful, and in March, the High Court dismissed Mr Meehan’s appeal of the decision.

Mr Meehan has recently shelved plans for a retirement village on the Ayrburn land, and is now pursuing a rezoning of the site for lifestyle lots.

He is still seeking to develop a retirement village on the Waterfall Park land, having abandoned plans for an alreadyconsented 380room hotel and spa complex on the site.

In an emailed statement, Mr Hadley said he was pleased with such a clear judgement.