It is open warfare at Raumati Dental Centre in Paraparaumu as the new lock horns with the old. Rudayna Ibrahim and Hayder Al-Sabak have joined forces in an attempt to oust from the Dental Centre dentist Gary Lawrence who has been operating in Raumati Beach for over 35 years.
In three separate court proceedings over the last few months each side had chased a quick legal solution. In each case, the court has ordered a stay of proceedings telling the warring parties to go to arbitration.
In the latest round, Mr Ibrahim sought a court order to force Mr Lawrence out of the building. Eviction would leave Mr Lawrence with no practice, no income and no ability to treat patients.
The High Court was told the premises are owned by Mr Lawrence’s family trust. The trust leases the premises to Openyd Ltd; a holding company which provides an administrative structure for the group dental practice. Previously, Openyd shareholding was divided equally between the three dentists. Mr Lawrence tried to sell, but could not find a buyer. Through 2017 there was a falling out. Mr Al-Sabak gave Mr Ibrahim voting power over his shares. Things moved rapidly. Mr Lawrence was removed as director with Mr Ibrahim’s son installed in his place. Mr Lawrence asked the High Court have a receiver put in control of Openyd and he applied to have Openyd put into liquidation.
Each of the three dentists is party to a Deed of Association. It sets out the rules, as between themselves, for the operation of the dental practice. Mr Lawrence says his failure to find a buyer triggers a clause in their Deed bringing their association to an end. The Deed also has an arbitration clause: all disputes about the meaning or operation of the Deed must go to arbitration. Mr Ibrahim says the arbitration clause does not apply to arguments about rights of occupation. Openyd is the tenant. Each dentist has a sub-tenancy from Openyd which can be terminated by Openyd at will. Openyd has given notice, he said. Mr Lawrence should go. Justice Cooke ordered a stay of eviction. Arbitration comes first. Then the issue of eviction can be considered in the light of an arbitrator’s ruling over the status of their Deed of Association.
Openyd Ltd v. GJ Lawrence Dental Ltd – High Court (3.07.18)
18.137