Trustees of a Taupo ahu whenua trust put loyalty to a friend ahead of their duties as a trustee, the Court of Appeal said, confirming removal of trustees from office and ordering review of the benefits gained by fellow trustee Tom Walters. Maori Land Court had ordered Walters pay $128,000 to the Oruanui Lands Trust.
Beneficiaries of Oruanui Lands alleged trustees Michelle Satchell, Kori Trevelyan and Aperahama Withers had allowed fellow trustee Tom Walters, also known as Eric Walters, to buy trust land on the cheap in a sweetheart deal.
The Court of Appeal was told Oruanui Lands owned some 200 hectares of farm land near Taupo. It leases the land, collecting rent. As an ahu whenua trust, Oruanui has some 650 beneficial Maori owners. In 2013, trustees considered buying adjoining farm land coming up for auction. The vendor was looking to get $1.6 million; the then rateable value was $1.05 million. Oruanui did not have sufficient resources to buy at these prices, but the trustees agreed between themselves that Mr Walters would put up one-third of any successful bid, in return getting ownership of a farm house on the land. At the November 2013 auction, Oruanui was the successful bidder at just $595,000. Oruanui could fund its purchase at this price with its own resources. One month later, trustees confirmed Mr Walters could have the farmhouse plus an adjoining four hectares at one-third the bid price: $198,3000. There was no independent valuation of the property being onsold. Beneficiaries complained Mr Walters was getting trust assets at below market price.
The Maori Land Court removed all the Oruanui trustees from office, ruling there was a conflict of interest in selling to a fellow trustee. This ruling was confirmed by the Court of Appeal. Mr Walters said he took no part in the decision. He excused himself from that part of a meeting at a lawyer’s office when the contract was signed, he said. The fact he excused himself from one part of one meeting did not counterbalance the vast volume of evidence that shows Mr Walters was intricately involved from beginning to end in Oruanui selling trust property to himself, the court said.
The Maori Land Court also ruled Mr Walters pay $128,000: the value of the property transferred less the price paid together with a sum of $200,000 Mr Walters claimed to have spent upgrading the property. A review of these figures was ordered. In dispute is the value of the farmhouse and the extent of claimed improvements.
Walters v. Wikiriwhi – Court of Appeal (29.03.22)
22.068