On home detention, Otaki lawyer Quentin Haines gained a High Court injunction blocking a forced sale of his property by Harry Memelink seeking to recover monies he claims is owed. Wellington-based Memelink, described as a very active litigant, is frequently in court on the other side, resisting creditors’ claims against him.
Haines is serving a sentence of home detention after pleading guilty to breaches of the Prostitution Reform Act. The High Court was told of a complicated business relationship between Haines and Memelink. Mr Haines lifestyle property at Manakau, near Levin, is owned by his family trust. The purchase was funded in part with finance from Fico Finance Ltd. Mr Memelink and interests associated with him guaranteed repayment of this loan together with further loans advanced by Bright Enterprises Ltd. Mr Memelink used part of the Fico funding to buy a boat: the Katherine Johnston. Mr Haines lent Mr Memelink money to pay pressing creditors. Mr Haines alleges there was an oral agreement that Mr Memelink would pay his debt servicing costs as a set-off against legal fees owed.
Evidence was given that Mr Memelink took control of the Fico loan after paying off the finance company’s loan to Mr Haines. Taking over Fico’s legal rights as mortgagee, Mr Memelink attempted to sell up Mr Haine’s lifestyle block. It is alleged Mr Memelink is attempting to consolidate other loans into the Fico security; something prohibited by the Property Law Act, Justice Grice pointed out.
Mr Memelink was blocked from enforcing the Fico mortgage until he provided details of how much was owed and how it is calculated. Debtors have a statutory right to know how much is owing, giving them a chance to challenge the amount or make payment and avoid a forced sale.
The court was told Mr Memelink is bankrupt. He has applied to have his bankruptcy annulled.
Mr Haines surrendered his lawyer’s practising certificate in 2018. His claim to be owed $1.15 million in legal fees is subject of a Law Society complaint by Mr Memelink.
Haines v. Memelink – High Court (11.03.19)
19.053