Owning forestry land near Kaitaia, Maori-owned Peria Charitable Trust is accused of selling the same cutting rights twice over. A Mark Hotchin controlled company’s claim for damages has been stalled in the High Court; Peria says it is owed damages.
The High Court was told Peria first granted rights to plant and harvest trees on its land back in 1996. These forestry rights have since passed through a string of owners including Elders Finance and Hanover Finance. In 2010, they wound up on the books of OHL Ltd as part of a Companies Act amalgamation of sundry Hanover group companies. Mark Hotchin controls OHL Ltd. In 2016, Peria offered to buy out OHL’s forestry right for $100,000. The offer was later withdrawn. Peria then sold cutting rights elsewhere, claiming the Companies Act amalgamation did not transfer any forestry rights to OHL.
In the High Court, Associate judge Andrew ruled OHL did own the forestry right; it passed across as part of the amalgamation. OHL was refused judgment in its favour. OHL’s claim for damages has to be heard in conjunction with Peria’s counter claim, he said.
Peria alleges it is owed damages because OHL failed to perform its part of the contract when holding the forestry right by failing: to pay rates due; maintain the woodlot and boundary fencing; and ensure proper upkeep of roads, bridges, culverts and firebreaks.
OHL Ltd v. Peria Charitable Trust – High Court (27.03.19)
19.067