More evidence that having too much money can bring misery; Erceg family members are in court arguing over their late mother’s former home on Withiel Drive in the leafy Auckland suburb Epsom: daughter Vinka and son Ivan both claim ownership.
Vinka says Withiel Drive was purchased using family money with the intent she would inherit following their mother’s death; Ivan says their mother was absolute owner and she bequeathed the property to him on her death.
The fount of Erceg family wealth was son Michael’s ownership of Independent Liquor, rumoured to be worth in excess of one billion dollars after his 2005 death in a helicopter crash. Lawyers have been kept very busy with litigation over Michael’s wealth, primarily claims by brother Ivan to a greater share. Ivan was bankrupted in 2010. Their mother Millie died in October 2019.
The High Court was told Withiel Drive was purchased at auction in late 2004 for $1.7 million. Michael put up the money. Millie Erceg’s name went on the title. On Millie’s death, family dynamics played out in the High Court. Vinka said brother Michael made it clear at the time of purchase their mother had only a life interest in the property; it was hers on their mother’s death. Whilst alive, Millie transferred ownership to a family trust, over which Ivan ultimately had control. There was evidence of family steps taken in 2007 to protect their mother from what was viewed as inappropriate behaviour by Ivan. Vinka said their mother was concerned Ivan was placing heavy financial demands on her; Ivan had already taken some two million dollars from their mother’s bank account, she said. Millie signed a ‘dummy’ mortgage in favour of Vinka, enabling Vinka to lodge a caveat against title to Withiel Drive preventing any further registration against the title without Vinka’s approval. This was later removed, at her mother’s request said Vinka. Her mother appeared to have forgotten the original reason for setting up the ‘dummy’ mortgage, she said.
In the years prior to her mother’s death, Vinka lodged a series of caveats against title to Withiel Drive to protect her claimed rights to ownership. This was done at times when their mother fell ill, with the caveat later lifted. After their mother’s death in 2019, Ivan disputed Vinka’s right to ownership.
Justice Downs ruled Vinka’s current caveat over title to Withiel Drive remain, pending a full court hearing over the two siblings disputed claims. There is no documentary evidence supporting Michael’s statements about ultimate ownership of Withiel Drive. Vinka said other family members and an independent witness support her claim of conversations with Michael promising her eventual ownership.
Sain v. Millie Erceg Trustee Ltd – High Court (16.07.20)
20.126