Published 15 October 2008
The second of a possible 5 cases involving hundreds of Blue Chip investors with money tied up in Auckland apartment developments has been sent to a High Court case management conference on Friday 7 November.
The case before Justice John Priestley today was between investor Neil Hickman and development company Turn & Wave Ltd, a subsidiary of Tim Manning’s Norwich Enterprises Ltd.
A previous case already sent to the case management conference has been brought by buyers of units in Greenstone Group Ltd’s Barclay apartment building on Albert St and the developer.
Justice Judith Potter, the Auckland High Court’s liaison judge, has decided that all Blue Chip cases should be referred to her and, at least at this stage, Justice Geoffrey Venning is managing the Barclay litigation plus, now, litigation over Mr Manning’s Bianco Off Queen.
Paul Dale, acting for about 400 investors in both cases, said in court today another 3 similar cases were pending, all involving deposits on apartments which had reached or were about to reach practical completion. They would all involve claims of unconscionability, including negligence by lawyers.
Mr Dale said investors who couldn’t afford these units had bought them through schemes devised by Blue Chip Financial Solutions Ltd, which had then collapsed.
Greenstone moved to settle with buyers in October and was then confronted with litigation brought by 70 investors seeking to prevent Greenstone from picking up their deposits or causing them to be forfeited.
Mr Dale said he’d produced a draft statement of claim from the Barclay case which ran to 413 pages and needed to be redrafted for the particular circumstances of each investor.
He had told counsel for Turn & Wave, David Chisholm, he thought he could produce particularised statements of claim by 21 November, while Mr Chisholm argued that 5 weeks had passed since agreement was reached on expeditious action and nothing had happened as far as his client was concerned. He said Mr Manning had offered documents to aid the process.
The Bianco development of 157 units in 2 towers at the corner of Turner & Waverley Sts, just off Queen St above Mayoral Drive, is scheduled for practical completion in November, with settlement normally to follow within 1-2 weeks.
1 October 2008: Blue Chip deposit-related case adjourned again
26 September 2008: Blue Chip deposits case adjourned
19 September 2008: Manning seeks consent for Albert St tower as Bianco hits sales trouble
Want to comment? Email [email protected].
Attribution: Court call, story written by Bob Dey for the Bob Dey Property Report.