With a decision that will resonate with Maori, the High Court ruled emotional attachment to land is a factor to be considered when selling land surplus to government requirements. Grandsons of James and Jocelyn Vogel argue they are entitled to preferential treatment in a government sale of Vogel House in Wellington.
In 1965, the Vogels gifted their grand family home to government. It is a two-storey house on 9.6 hectares of land in Lower Hutt. The property has been variously occupied since by the Australian High Commissioner, the Governor-General, prime ministers and other government ministers. Cost of upkeep and new rules governing ministerial accommodation led to a government decision to sell. The property was valued at five million dollars in 2014.
Crown Lands reviewed the wills left by both James and Joyce Vogel, identifying that their grandsons Timothy and Geoffrey Vogel together with the Vogel Charitable Trust and the Wellington SPCA had an interest in what might happen to the property. In a June 2016 decision, Crown Lands decided Vogel House would be sold to The Vogel Charitable Trust and the SPCA for $415,000, being the value of improvements made since the 1965 gift. The grandsons objected. They were entitled to the same deal they said, particularly given their family association and emotional attachment to the property. Crown Lands then decided to sell Vogel House on the open market. Grandsons Timothy and Geoffrey again objected.
In the High Court, Justice Mander reviewed operation of the Land Act as it applies to sales of surplus government land. The Act allows sales without public tender if to do so would create ‘hardship’ for an applicant. ‘Hardship’ is not limited to financial hardship, he ruled. It can include distress from losing an opportunity to acquire land having a family connection. ‘Hardship’ creates an entitlement to negotiate prior to any surplus land being advertised for sale. Sale at a reduced market price is permitted by the Act. Crown Lands has a discretion in setting the price. But to sell property valued in excess of five million dollars for $415,000 is not permitted, Justice Mander ruled. That amounts to a gift by government.
Crown Lands was left to reconsider its strategy for the sale of Vogel House. The property has heritage status under the Heritage New Zealand Pouhere Taonga Act. There are restrictions on subdivision
Vogel v. Crown Lands – High Court (4.05.18)
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