Attempts
to again bankrupt property developer Brent Clode are on hold with the High
Court giving him breathing space to appeal a court order he pay $150,000 to a
family trust related to Clearwater Construction’s Michael Sullivan.
The Sullivan Trust sued
Mr Clode over misrepresentations made about his rights to participate in the
Thompson Park development in Mt Wellington, Auckland. The Trust took steps to bankrupt Mr Clode
after he failed to repay the ordered $150,000.
Mr Clode said an appeal is underway.
If successful, the Sullivan Trust will owe Mr Clode. The Sullivan Trust argued Mr Clode is just
playing for time, using court procedures to stave off the inevitable. The amount owed under several court judgments
is said to total some $225,000.
Evidence was given that
Mr Clode was one day late in filing his notice of appeal. He blames problems with couriers. Time was taken up applying to court for an
extension of time to appeal. He did not
comply with a court order that he lodge security for costs on the appeal until
leant on by creditors. Mr Clode failed
to comply with pre-bankruptcy procedures requiring him to list assets and
liabilities. Mr Clode offered to pay into
court the disputed $150,000 pending his appeal, but then did not do so. The Sullivan Trust said this is all evidence
of Mr Clode’s lack of good faith.
Associate judge Bell
said Mr Clode has a bad business reputation and has a record of taking part in
questionable transactions. But even
shady characters are entitled to appeal, he said. Mr Clode has been bankrupted previously. In prior litigation he has been found to have
used sham documents and to have misused court processes.
Mr Clode told the court
his prospects are looking up. He says he
is to be paid $300,000 a year as development manager for a $65 million
apartment project in Takapuna on Auckland’s North Shore. He claimed shortly to be in a position to pay
all creditors even if the current appeal is not successful. As a mark of good faith, he has placed
$100,000 with his lawyer, he said.
Judge Bell ordered a
stay on applications to bankrupt Mr Clode, subject to his lawyer undertaking to
pay across to Mr Clode’s creditors the $100,000 currently held in trust should
the appeal fail.
re
Clode – High Court (17.08.17)
17.104