A decades old family dispute again surfaced with sale of Whataroa Hotel on the West Coast to pay rates arears. Patrick Dennehy’s claim to $150,000 held in the pot was dismissed by the High Court.
Avoca Holdings Ltd was set up in 2000 with brothers Gerard and Patrick Dennehy 50/50 shareholders. Ten years on, the two were in court disputing ownership of the company and arguing over who was in charge of running the Whataroa Hotel. This after Gerard had police evict Patrick from the hotel. Patrick’s attempt to put the company into liquidation failed; it was a private dispute about share ownership and that was not grounds to put Avoca into liquidation, the judge ruled. Another ten years on, Westland District Council was looking to force a rating sale for hotel rates arrears. Hampering Council sale plans was a caveat registered on the title, part of the legal debris left over from the High Court dispute ten years previously. To expedite matters, Avoca Holdings was put into liquidation for unpaid rates and the hotel sold. Patrick immediately resurrected his claim to a half share of Avoca’s net assets; in this case a claim against the $150,000 held by Avoca’s liquidator. Associate judge Paulsen dismissed his claim. Patrick had no claim against company assets; his claim remained a dispute with his brother, a dispute still not resolved.
Judge Paulsen also dismissed claims Patrick was owed money by the company for work done. These claimed debts were over thirteen years old, well outside the six year time limit for taking legal action.
Avoca Holdings Ltd v. Dennehy – High Court (17.09.21)
21.156