Manoeuvring by one brother to get a price advantage over the other was cut short by the Court of Appeal; 8.3 hectares in the centre of Warkworth valued in excess of seven million dollars owned by Conrad and Martin Robertson is to be sold at auction with each entitled to bid.
The two purchased the land in early 1980s, carrying on a family boat building business alongside the Mahurangi River. In 1995, Martin left to continue boatbuilding from other sites. He remained co-owner of the Mahurangi site with brother Conrad; the two as landlords leased the site to Conrad’s business. The Court of Appeal was told each at various times offered to buy out the other, with nothing ever agreed. In 2007, the lease to Conrad expired, running-on as a monthly tenancy at the previous rent. Over time, this rental began to diverge markedly from market rents.
Discussions over what to do with the land stalled. Conrad wanted full ownership so he could expand his boat building business operating from the site; Martin had plans for development as residential housing. Conrad’s court application to have the land partitioned under the Property Law Act saw a court ruling the land be sold at auction with each entitled to bid and each receiving half the net proceeds on sale. Conrad appealed. He variously wanted: that the court fix a price at which he would buy out his brother; that part of land occupied by his boatyard be carved off for him to take sole ownership; that he be entitled to buy out his brother at a earlier 2020 valuation.
Criticising what it called a kaleidoscope catalogue of changing proposals from Conrad, the Court of Appeal confirmed the earlier court ruling that the land be sold at public auction. This was the best method to determine current market value. Either brother could bid; each had the bidding advantage of receiving back half the price paid.
Robertson v. Robertson – Court of Appeal (5.07.21)
21.113