Oil. From the freezing steppes of Kazakhstan,
disputes over ownership of shares in Max Petroleum and allegations of shady
dealing have reached New Zealand via London and the Bahamas. The forced sale of a Wellington property owned
by Bahrain resident Thomas Sinclair was ordered by the Court of Appeal to help
recover a three million dollar costs order imposed on Mr Sinclair by courts in
the Bahamas and England.
Arguments over ownership of Max Petroleum
have been fought for years through courts in the United Kingdom, United States,
Australia and the Bahamas. Max’s value
has steadily declined.
With offices in central Asia, consulting
firm Michael Wilson & Partners set the ball rolling with a 2010 London
arbitration alleging former employee John Emmott ripped them off making secret
profits on Max shares they said he held as trustee. Control of Max shares was frozen by a London court
until the dispute was sorted out.
Meanwhile, Mr Sinclair sued in the Bahamas claiming ownership of the
disputed Max Petroleum shares. With Mr
Emmott as his ally, Mr Sinclair tried but failed to get MW & Partners
joined into the Bahamian litigation. Mr
Sinclair was ordered to pay MW & Partners some three million dollars in
costs for the failed Bahamian joinder and related litigation in the English
courts.
MW & Partners transferred the costs
judgments to New Zealand for enforcement under the Reciprocal Enforcement of
Judgments Act. The Court of Appeal said
the Act transforms a foreign court judgment into a debt recoverable in New
Zealand, ordering a forced sale of Mr Sinclair’s Wellington property to recover
payment. There was evidence that Mr
Sinclair has about one million dollars equity in a Wellington house. The Court
said it has no discretion when enforcing overseas court orders to consider
ancillary offshore disputes between litigants.
The 2010 London arbitration decided Mr Sinclair owned the disputed Max
Petroleum shares. He is suing MW &
Partners claiming losses allegedly suffered since the freezing order was
imposed. MW & Partners allege the
2010 London arbitration award was obtained by fraud.
Michael
Wilson & Partners v. Sinclair – Court of Appeal (5.08.16)
Post Judgment Note: Legal action by Mr Sinclair to block his bankruptcy in New Zealand by Michael Wilson & Partners was dismissed by the High Court in July 2020.
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