Win for Stonewood Homes founder

The Chow brothers’ company that took over the failed Stonewood Homes business has failed in a legal claim against franchise founder Brent Mettrick and former business partner Tony Anderson.

Michael and John Chow’s Stonewood Homes NZ (ChCh) Franchisor was seeking $556,920 from Mettrick.

Mettrick declined to comment about his win. He now works for another Canterbury house building company, Green Homes.

Stonewood Homes NZ (ChCh) Franchisor was registered by the Chows in 2016 to buy the master franchise assets of the Stonewood group from receivership.

The lawsuit launched against Mettrick and Anderson alleged they had signed a guarantee over one of the companies in the franchise group, Stonewood Homes (Hamilton), which is in liquidation, for $556,920.

But Mettrick and Anderson’s lawyer said the wording of the guarantee applied only for the three years from March 14, 2008.

The guarantee money claimed by the Chows’ Stonewood Homes NZ (ChCh) Franchisor related to amounts incurred after March 2011, the date the guarantee ran out.

The guarantee stated that the term was for an initial period of three years and allowed for a renewal of a further term of three years. But the renewal never took place.

Furthermore, Anderson was no longer involved with the Stonewood group after March 2011.

The lawyer for the Chows argued the guarantee continued to apply after the initial three years.

But Associate High Court judge Rob Osborne concluded the written contract only applied to the initial three-year period.

He granted Mettrick and Anderson summary judgment against the Chows. He also ordered the Chows to pay the legal costs of Mettrick and Anderson.