30 April 2019

Tender: English v. Foley

It started as two locals scoping a potential Queenstown development for Hong Kong resident Marc Holtzman.  When Mr Holtzman dropped out, Queenstown builder Wayne Foley and farming consultant Conor English were left arguing over who is entitled to the economic benefit of Laurel Hills development overlooking Shotover River.
After an initial High Court hearing, Associate judge Lester ruled the two at best had a ‘deal to do a deal’ and further evidence was needed to identify who is entitled to the profits.  The court was told Mr English drew to Mr Holtzman’s attention the potential of subdividing Laurel Hills.  Mr Holtzman in turn sought advice from Mr Foley who had just completed a substantial Queenstown home for him.  Mr Foley cautioned against any project requiring local authority consent.  Meanwhile, Mr Conor proceeded to scope the project. With encouragement from Mr Holtzman, he liaised with Mr Foley.  Mr Foley submitted a conditional tender, with Mr Conor overseas at tender closing date in April 2018.  Mr Conor had discussed with Mr Holtzman a tender price of five million dollars with a due diligence period.   
With Mr Holtzman’s withdrawal from the project, Mr Foley said the project was his alone.  He never agreed to enter into a joint venture with Mr Conor, he said.  He had never met him.  Mr Conor argued Mr Foley submitted the tender as agent on his behalf, or failing that, the two were joint venture participants in the Laurel Hills project.  Judge Lester ruled further evidence is needed to establish beneficial ownership of Laurel Hills.
English v. Foley – High Court (30.04.19)
19.082