Alex van Heeren has spent in excess of $11 million dollars on legal fees in twenty five years of litigation in which he was found to have defrauded his then business partner, the late Michael Kidd. The Court of Appeal ruled van Heeren could not dip into funds held in court to pay further legal expenses; this money is held on Mr Kidd’s behalf pending final calculation of damages payable by Mr van Heeren.
Mr Kidd died two weeks after Mr van Heeren paid into court US$25 million being a preliminary estimate money owed Mr Kidd. Mr van Heeren paid this money belatedly into court, some six years after he was ordered to make payment within one month. Within days, most of the money was disbursed to Mr Kidd for payment to his ligation funder. There is about US$6.8 million left sitting in court. Mr van Heeren applied to have his continuing legal expenses paid out of this money.
The High Court was told Mr van Heeren currently lives in South Africa. He disputes how much is owed Mr Kidd’s estate following a 2013 South Africa court ruling that he defrauded Mr Kidd out of a half share of their steel trading business. Following an initial New Zealand High Court hearing, their business was calculated to be worth US$50.8 million as at 1991. Payment of half this amount into court was ordered. A final hearing is pending on calculation of interest; conflicts between South Africa law and New Zealand law on calculation of interest are at issue. Interest claimed is in excess of US$20 million.
Mr van Heeren asked he be allowed to recover US$2.5 million dollars in payment of ongoing legal expenses from the US$6.8 million sitting in court. Assets he previously owned are tied up in trusts over which he has no control, he said. These legal obstacles were erected entirely by Mr van Heeren himself, the Court of Appeal observed. The funds held in court are for the benefit of Mr Kidd, not Mr van Heeren, it ruled.
Kidd v. van Heeren – Court of Appeal (7.04.22)
22.072