Scott family interests from Oropi, near Tauranga, failed in their claim Malaysian investor Thean Kai Sheung owed $1.17 million for harvesting rights over native timber in a Kaimai forest. While a joint venture agreement was signed, Mr Sheung was never committed to the deal.
The Scotts own Forest Holdings (NZ) Ltd. They allege Mr Sheung agreed in 2017 to take up fifty per cent of Forest Holdings rights to harvest rimu and tawa in the Kaimais. Unpaid, the Scotts sued. Terms of a 2017 joint venture agreement came under minute scrutiny in the High Court.
Justice Duffy ruled wording of the agreement required payment of $1.17 million by a specified date before the joint venture became legally effective. Since no payment was made, the joint venture had no legal effect from that specified date. It did not matter that the joint venture agreement was in fact signed off after the specified date. Mr Sheung personally did not sign; a company Mr Sheung was considering investing in had signed up to the proposed joint venture.
Forest Holdings (NZ) Ltd v. Sheung – High Court (1.07.20)
20.114