14 July 2020

Joint Ownership: Minehan v. McGuigan

 Family ties are strong on the West Coast, but not between cousins the Minehans and the McGuigans with ongoing disputes over operation of a dry stock farm in Mikonui River Valley, near Ross. To break their deadlock, Justice Doogue ordered Bede McGuigan’s quarter interest in the farm be bought out and McGuigan pay an increased share of his cousins legal costs because of his uncompromising and unhelpful behaviour.

Farming in Mikonui Valley has been in Minehan hands for three generations.  After the deaths of second generation owners, Jim in 1994 and Martin in 2014, ownership came to be split between Martin’s two daughters Dea and Julie (jointly holding a 75 per cent stake) and a distant relative of Jim, Bede McGuigan (with a 25 per cent stake).

The High Court was told Dea has been actively managing farming operations since 1998.  Julie helps out as required.  Bede has been obstructive.  He refused permission to build a new homestead on the property.  His refusal to sign mortgages has hampered attempts to raise loan finance for further development of the farm.

Justice Doogue ruled the best remedy was to make a Property Law Act order forcing Bede McGuigan to sell his share to Dea and Julie. The alternative of subdividing one quarter of the land for Bede was not practicable; farming operations are split across three separate properties.  Justice Doogue called for an updated property valuation.  In 2019, the farm was valued at $1.6 million.

Justice Doogue signalled increased legal costs would be imposed on Bede because of his unreasonable behaviour.  After leaving his cousins with no alternative but going to court, he did not attend at court to challenge their Property Law Act application. 

Minehan v. McGuigan – High Court (14.07.20)

20.124