Owners of commercial units at 408 Hutt Road/Wakefield Street in Wellington must be ruing the day they ever bought in; tied up in convoluted legal proceedings by now-bankrupt Harry Memelink and trusts associated with him which have refused to pay body corporate levies and have now been injuncted by court order to stop interfering in body corporate affairs.
With Memelink’s payment of body corporate levies in arrears since 2018, other unit holders have been forced to top up corporate funds. Interests associated with Mr Memelink own seven of the thirteen units. Mr Memelink alleges ‘fraud and misconduct’ by the body corporate in relation to setting levies and use of body corporate funds. In earlier court proceedings Mr Memelink was described as having a long history of claiming illegalities in respect of levies and using this as an excuse for not paying anything. In October 2017, the High Court appointed an administrator to take control of the corporate’s dysfunctional management.
Mr Memelink was bankrupted in 2018. The standard three year period for automatic discharge from bankruptcy did not start running until September 2022, the date when he filed a complete statement of assets and liabilities with Insolvency Service. The Link Trust (No.1) through which he owns Hutt Road units was put into receivership by court order to enable sale of the units without interference by Mr Memelink. That is not proving particularly effective.
In December 2022, Mr Memelink lodged a caveat against title to the units, attempting to block any sale. It took a High Court application by the receivers to have it removed. Justice Cooke ordered Mr Memelink not to interfere with proposed sales. The Body Corporate administrator found Mr Memelink had contacted the building’s insurers with further allegations of Body Corporate fraud and theft. Insurance cover was cancelled. Bodies Corporate must hold current insurance. Proposed sale of Mr Memelink’s units would be difficult without current cover. Evidence was given that the administrator had difficulty in getting new insurance cover written at a reasonable cost. Justice Grice issued an injunction blocking Mr Memelink or any person associated with him from interfering with the Body Corporate’s insurance arrangements.
Body Corporate 68792 v. Link Trust (No.1) & Memelink – High Court (16.12.22)
23.012