Individuals aggrieved at closure of the Laura Fergusson rehabilitation centre in Auckland and angry that they were refused membership of Fergusson Trust will get their day in court. Trust attempts to strike out their claims were dismissed by Justice Hinton.
For over fifty years, Laura Fergusson Trust provided residential accommodation and rehabilitation for the disabled. The Trust is named after and grew out of concerns raised by the spouse of a former governor-general who was dismayed to see hospital geriatric wards being the only accommodation available for disabled patients.
In 2019, the board decided to close down Laura Fergusson’s operations on its valuable Epsom site, selling the land for development as residential apartments. Sale price has not been publically disclosed beyond reference in Trust 2021 financial statements to receipt of a $9.9 million deposit, $186,000 from sale of furniture, equipment and motor vehicles and $116,000 paid board chair Chris O’Brien for ‘provision of advice’ in relation to the Epsom sale.
Friends of Laura Fergusson have been campaigning against the sale and proposed use of the proceeds. In particular, they say the Board is acting contrary to its own constitution should it enter into a proposed joint venture with Autism New Zealand.
Friends allege existing board members of Laura Fergusson Trust are improperly protecting their own position by refusing Trust membership to any person likely to vote them out of office. Friends claim up to 135 individual applications for membership have been declined, without giving a reason.
Justice Hinton allowed Friends to continue with court proceedings against the Trust alleging that it is in breach of contract by refusing membership applications and that it is restricted as to how it uses Epsom sale proceeds. Friends are also asking for a formal inquiry into Trust management and Trust operations.
Malthus v. Laura Fergusson Trust Inc. – High Court (17.03.22)
22.062