Multiple attempts by Peter Mawhinney and interests allegedly associated with him to frustrate the mortgagee sale of a forestry block on Anzac Valley Road in west Auckland have been dismissed by the courts, including an attempt to argue the forest was a residential property protected by the Residential Tenancies Act.
In March 2017, Waitakere Farms Ltd became owner of the 51 hectare forestry lot paying $1.65 million following a mortgagee sale. The effect of a mortgagee sale is to clear the title of all interests subordinate to the mortgage. Rights of lower ranking mortgages and rights of the previous owner are stripped off the title.
Waitakere Farms’ interest as new owner of Anzac Valley was challenged by a company called Epsom Woods Ltd. It claimed a forestry right over trees on the land and further claimed a residential tenancy existed with rights of occupation running to 2040. Epsom Woods, controlled by former bankrupt Andrew Bond, was incorporated in June 2018. It is alleged the company is a front for Peter Mawhinney, currently bankrupt. Mr Mawhinney owned the forestry block prior to its mortgagee sale, both in his own name and through a series of trusts. He gained notoriety for long-running legal battles with first Waitakere City Council and later Auckland City in unsuccessful attempts to subdivide Anzac Valley. Council frustrations led to a 2016 High Court order blocking Mr Mawhinney from mounting any more litigation for a period of five years.
The High Court was told it took four years to finalise a forced sale of Anzac Valley to Waitakere Farms; Mr Mawhinney was regularly in court challenging the right of the mortgagee to sell and the manner of the sale.
Waitakere Farms than faced a claim Epsom Woods owned cutting rights to the trees. This was evidenced by an assignment of cutting rights signed by Mr Mawhinney as trustee of the Anzac Valley Trust and by Mr Bond of Epsom Woods. Both their signatures were witnessed by a Paul Graeme Alexander described by Associate judge Bell as a person who has made his own contributions to case law on bankrupts and insolvents. Mr Alexander has been bankrupted more than once. Judge Bell ruled Epsom Woods had no greater right to the trees than did Mr Mawhinney and Mr Mawhinney’s claimed cutting rights were lost following the mortgagee sale.
The claim Waitakere Farms was bound by a residential tenancy running to 2040 was also dismissed. The court was told there is no residential accommodation on site; just converted containers used for storage and a site office. The Tenancy Tribunal ruled that the Residential Tenancies Act does not apply to Anzac Valley; there is no residential accommodation on site. Named as supposed residential tenant at Anzac Valley was Anthony Mawhinney, brother of Peter Mawhinney.
Waitakere Farms is controlled by Hunterville-based Joe Duncan.
Epsom Woods Ltd v. Waitakere Farms Ltd – High Court (17.6.19)
19.111