Just one day before Harness Racing New Zealand took control of trotting club assets, Dunedin property developer Gary Todd bought a slice of land owned by Forbury Park Trotting Club in St Kilda, Dunedin. The High Court dismissed Harness Racing’s argument that the deal has been cancelled, but there is still a live legal issue as to whether Harness Racing can refuse approval for the sale.
The Racing Industry Act had a fiery birth, with local interests up and down the country hotly protesting compulsory acquisition and control of local racing venues. It was enacted on 30 June 2020. One day earlier, Forbury Park Trotting Club completed negotiations for a $1.33 million sale of 6.4 hectares of its land to a property company controlled by Mr Todd: Seed Housing Ltd.
Learning of the sale, Harness Racing NZ lodged a Racing Industry section 21 notice on the title, warning sales were prohibited without prior Harness Racing approval. Seed Housing immediately lodged a caveat to protect its claimed rights as purchaser.
In the High Court, Harness Racing claimed the sale to Seed Housing was illegal. The Racing Industry Act had retrospective effect, it said. Associate judge Paulsen ruled Seed Housing had a valid contract, but it was arguable that Racing Industry Act requirements meant Harness Racing had to approve the sale.
Harness Racing refused consent to the $1.33 million sale. The court was told pragmatic efforts by Mr Todd to renegotiate the deal and purchase Forbury Park’s entire site came to nothing.
Judge Paulsen ruled Seed Housing’s caveat is to remain, but it has to take legal steps promptly to challenge Harness Racing’s refusal to approve the existing sale. Under the Racing Industry Act, Harness Racing is required to promote long-term viability of racing in New Zealand. There has been no racing at Forbury Park since 2021.
Seed Housing Ltd v. Harness Racing New Zealand Inc – High Court (4.07.23)
23.109