Mum held son to his promise: Lou Westenra sued son Johnny for the balance owing on a $3.2 million family deal following sales of Craigieburn and Grasmere, iconic high country stations near Arthur’s Pass.
The High Court was told Constance (Lou) Westenra reached agreement with son Johnny in a 2014 court-brokered settlement conference with a $3.2 million deal intended to settle family differences. Problems had arisen after the 1998 death of family patriarch, Fenton. As co-owner of Grasmere, Lou, took ownership of this property by survivorship. Craigieburn remained under control of Fenton’s estate. Johnny was to continue managing the two properties jointly. His farm management came in for criticism. For a three year period from 2010 he took no active part in management, but then did return. When Lou decided to sell Grasmere, Johnny sued to block any sale.
The 2014 family deal agreed Craigieburn would be transferred to Johnny and then both Grasmere and Craigieburn would be put on the market as a job lot, with Lou promised $3.2 million when sales were complete. There were no firm offers in the next three years. Craigieburn was sold at a mortgagee sale in December 2017. Lou then sold Grasmere separately, for $2.1 million. She sued Johnny for $1.1 million to recover the full $3.2 million promised in 2014.
Johnny said he had been prejudiced by delays in negotiating rentals for the two high country stations. Rental rates would impact on price. The two stations are owned by University of Canterbury. Given them by government grant in the 1870s, they were intended to provide a source of revenue for the University. Grasmere and Craigieburn run holders have perpetually renewable leases. Associate judge Osborne ruled Johnny committed himself to the family agreement taking a risk there might be an unfavourable outcome in lease negotiations. He was committed to paying his mother a total of $3.2 million, regardless.
Johnny Westenra was ordered to pay the $1.1 million still due, plus interest calculated at $398,200.
Westenra v. Westenra – High Court (20.04.18)
18.075