09 July 2015

Partnership: Coxhead v. Dwyer

Sold at the knock-down price of $200 in a forced sale for unpaid agistment fees, thoroughbred mare Miss Meena now races in Australia with placings in 22 per cent of starts.  Former part-owner and racing manager Mr Barry Coxhead sued unsuccessfully for conversion.
The High Court was told Mr Coxhead purchased Miss Meena in 2009.  Almost immediately the horse was syndicated.  Interests associated with Mr Coxhead retained 52% and brothers Harjit and Hardesh Dheil purchased the remaining 48%.  The horse was stabled with Mr Don Dwyer at his Pukekohe training facility.  Two years later, following token efforts to get the Dheil brothers approval, Mr Coxhead decided to change trainers and move the mare to Taranaki.  A lawyer’s letter followed, written by solicitor Ms Mary Hackshaw – described to the court as Mr Dwyer’s domestic partner.  In the letter she pointed out Miss Meena is owned by a syndicate and decisions about the mare required consent from all syndicate members.  Evidence was given that Mr Dwyer and Harjit Dheil shifted Miss Meena temporarily to an undisclosed location thwarting moves to shift her south.  Over the next five months Mr Coxhead paid his share of some but not all the monthly training and agistment fees owing to Mr Dwyer.  This resulted in Mr Dwyer claiming a lien over the mare for unpaid fees and putting the horse up for auction.
The Court was told Mr Coxhead planned to attend the auction either to buy the horse cheaply or to bid up the price.  He missed the auction.  NZ Bloodstock advertised the sale for 9 May 2012, but in fact the mare was sold by auction the preceeding day to comply with the lien notice which specified 8 May for a sale.  Ms Hackshaw was the purchaser at $200.  Ownership was later registered in the names of the Dheil brothers, Ms Hackshaw and Mr Dwyer.  Miss Meena now races in Australia.
Justice Heath dismissed Mr Coxhead’s claim in conversion.  The mare was not his personal property.  She was property of the syndicate: partnership property.  Mr Coxhead had no right to unilaterally claim exclusive possession.  All syndicate partners had a right to possession.  A failure to pay agistment fees meant the mare was lawfully acquired by Ms Hackshaw at the lien auction.    
Coxhead v. Dwyer – High Court (9.07.15)

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