The
High Court ruled against attempts by Glenn Schaeffer, majority shareholder in
Woollaston Estates Ltd, to have allegations of fraud heard in the United States
courts avoiding adverse publicity in New Zealand.
Two US investors collectively paid US$2.3
million to Mr Schaeffer for what they thought were investments in an Upper
Moutere vineyard, near Nelson. They allege
promises of an ownership interest were not honoured.
The two investors are resident in Nevada.
Mr Schaeffer is also a US citizen,
having lived in Nevada until early 2013.
When the two US investors sued in the New
Zealand courts, Mr Schaeffer challenged their right to sue, saying the case
should be better heard in Nevada. One of
the reasons offered was that there would be less adverse personal publicity if
the case was heard in the US.
Associate Judge Matthews ruled the case
was best heard in New Zealand. Four of
the five legal issues raised concern alleged breaches of New Zealand law. Only one raised an issue of US law: an
alleged breach of the Nevada Deceptive Trade Practices Act. The two US investors are willing to travel to
New Zealand to give evidence. The court
was told Mr Schaeffer has assets in New Zealand available to be seized should
he be found liable after a full court hearing.
Murren
v. Schaeffer – High Court (6.11.15)
16.001