Archive | Litigation

Second Blue Chip deposits case adjourned to case management conference

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.

 

Earlier stories:

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

2 September 2008: Blue Chip investors’ Barclay case adjourned, deposits still held in trust

 

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Attribution: Court call, story written by Bob Dey for the Bob Dey Property Report.

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Blue Chip deposit-related case adjourned again

Published 1 October 2008

The litigation brought by Neil Hickman to stop his apartment deposit from being passed on to the developer has been adjourned another fortnight in the Auckland High Court.

 

The case is one of a number being brought by investors in Blue Chip Financial Solutions Ltd schemes. Mr Hickman was originally seeking an interim injunction to stop the deposit being passed on to Turn & Wave Ltd, which is owned by Tim Manning’s Norwich Enterprises Ltd, on completion of the Bianco off Queen apartment project on Turner & Waverley Sts in the Auckland cbd.

 

In court today, counsel Paul Dale told Justice John Hansen he no longer expected an injunction hearing would be needed: “What we’re likely to need is a representative number of plaintiffs for a trial.”

 

Mr Dale has a similar application back in court next week, involving investors in Greenstone Group Ltd’s just-completed Barclay apartment building on Albert St. However, it was too early a stage to consolidate the cases and Mr Hickman’s Bianco one was adjourned to the court’s duty judge list on Wednesday 15 October.

 

Although the cases haven’t been consolidated, Mr Dale said Justice Judith Potter had signalled that all Blue Chip litigation should be run past her.

 

Earlier stories:

26 September 2008: Blue Chip deposits case adjourned

19 September 2008: Manning seeks consent for Albert St tower as Bianco hits sales trouble

2 September 2008: Blue Chip investors’ Barclay case adjourned, deposits still held in trust

 

Want to comment? Email [email protected].

                                       

Attribution: Court hearing, story written by Bob Dey for the Bob Dey Property Report.

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Blue Chip deposits case adjourned

Published 26 September 2008

The representative application of a Blue Chip investor, whose money was placed in a development project nearing completion just off Queen St, went to the High Court for a brief mention this week and was adjourned for mention in the duty judge’s list on Wednesday 1 October.

 

Neil Hickman has applied to stop his deposit going to Bianco off Queen development company Turn & Wave Ltd, which is owned by Tim Manning’s Norwich Enterprises Ltd.

 

The Bianco development has 157 units in 2 towers of 14 & 17 storeys nearing completion at the corner of Turner & Waverley Sts, just off Queen St above Mayoral Drive.

 

The development was first sold by Blue Chip Financial Solutions Ltd to its clients, but that fell through and Blue Chip sold the project to Mr Manning’s company, Norwich Enterprises Ltd, based on sales to a second batch of Blue Chip clients. 50 of those Blue Chip investors ended up as the owners of 90 Bianco units.

 

Lawyer Paul Dale, representing Mr Hickman, said an adjournment had agreed to allow the plaintiffs time to file damages undertakings.

 

Mr Dale said earlier he had at least 250 clients from 5 apartment projects wanting to make similar applications. One group, invested in Greenstone Group Ltd’s just completed Barclay apartment building on Albert St, has its case due back in court for mention in the week starting 6 October. Mr Dale said after the brief Bianco hearing this week no proceedings on the others had been filed yet.

 

Earlier stories:

19 September 2008: Manning seeks consent for Albert St tower as Bianco hits sales trouble

2 September 2008: Blue Chip investors’ Barclay case adjourned, deposits still held in trust

 

Want to comment? Email [email protected].

                                       

Attribution: Court hearing, story written by Bob Dey for the Bob Dey Property Report.

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Blue Chip investors’ Barclay case adjourned, deposits still held in trust

Published 2 September 2008

A Blue Chip court case – which could lead to hundreds of apartment investors getting their deposits back and walking away from their investments – was adjourned almost before it started today.

 

Buyers of units in Greenstone Group Ltd’s Barclay apartment building on Albert St are seeking an interim injunction to stop their deposits being transferred to Greenstone. They bought their just-completed units through PIP (premium income product) & JV (joint venture) schemes promoted by Mark Bryers’ Blue Chip Financial Solutions Ltd, which collapsed last year.

 

A key feature of the investors’ claim is that the schemes were debt securities covered by the Securities Act and therefore requiring a prospectus, which hadn’t been issued.

 

Their lawyer, Paul Dale, said the investors and defendant Greenstone Barclay Trustees Ltd (John Abel Pattinson & Kevin Cox) reached agreement yesterday for the money to stay in the trust account of law firm Brookfields while other plaintiffs & defendants are added.

 

Mr Dale intends to complete his statement of claim by 27 September and the case will return to the Auckland High Court for mention in the week starting 6 October.

 

Mr Dale told Justice Geoffrey Venning today he had started with 32 Barclay plaintiffs and the number was now up to 49, with others seeking to join the action. He said similar claims would be made against the developers of 4 other apartment projects, one of them another Greenstone block.

 

“The number I represent at the moment is somewhere north of 250 plaintiffs,” Mr Dale said.

 

He said the litigation was important not just to investors who had concerns about their financial security and their homes being at risk, but also to developers who had entered a relationship such as the Blue Chip schemes to sell their products. Banks were also at risk and others involved in the transactions would want to know where they stood.

 

Mr Dale said he’d written to the developers of 3 of the other apartment projects but they weren’t yet subject of legal proceedings.

 

The developments are:

 

Bianco, 157 units in 2 towers of 14 & 17 storeys nearing completion at the corner of Turner & Waverley Sts, just off Queen St above Mayoral Drive, Norwich Properties Ltd (Tim Manning)Chatham, 51 apartments & 4 retail units, 9 levels under construction on Pitt St, GreenstoneIcon Central, 156 units in St Martins Lane, off Symonds St, Icon Central Ltd (directors Craig Mudgway & Len Ross of Paxton Pacific Group Ltd)Stadium Apartments, 174 units on 10 storeys under construction on Beach Rd by the entrance to the Vector Arena, Perron Developments Ltd (Cameron Marsh & Mark Perriam)

Mr Dale said he would apply to join 2 other law firms as defendants – Auckland lawyer Zeljan Unkovich and Hamilton firm Foster & Milroy. Auckland sole practitioner Jonathan Mathias is already a defendant.

 

After issuing orders putting the terms of yesterday’s agreement into effect, Justice Venning said he would propose that a judge be assigned to the case, a course the court has taken to steer complicated cases more quickly through proceedings.

 

Want to comment? Email [email protected].

                                       

Attribution: Court hearing, story written by Bob Dey for this website.

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