Glaister Ennor wins in the Supreme Court of New Zealand
Last month saw the successful end of a six-year dispute over the failed Kawarau Falls Station development in Queenstown, New Zealand, for a large number of investors represented by Glaister Ennor.
The development was meant to be an integrated lakeside development with over a dozen hotels and serviced apartment complexes built in three stages. Unfortunately, the Global Financial Crisis halted construction and only a handful of buildings in the first stage were completed. When called upon to settle on the investment units, the overseas investors refused to do so, on the basis that the developer had an obligation to complete the entire development, without which the investments would not have been commercially viable.
Glaister Ennor represented 45 overseas investors in the claim that began with in High Court of New Zealand, where it was held that there was no such obligation to complete the entire development. A substantial sum of damages were awarded against the investors, but they appealed to the Court of Appeal of New Zealand, which unanimously held that there was indeed such an obligation and that it was breached, overturning the High Court’s decision. In April 2017, Mitch Singh of our litigation team together with Stephen Mills QC and Andrew Barker QC appeared in the Supreme Court of New Zealand, which upheld the Court of Appeal’s judgment in a decision released last month.
The partners and staff at Glaister Ennor are delighted for these clients, who are now entitled to the return of their initial deposits totaling approximately $8 million, interest, and a substantial sum of costs, all of which have been secured until a final resolution of this matter.
Source: Agent Brief /InBrief December 2017
Author: Sarah Leppard