A court order was needed to dissolve a Christchurch husband and wife farming partnership because she refused to engage in any discussions to wind up the business.
Doctors David and Katriona Cole purchased a twenty hectare lot on Beltons Road at Leeston just outside Christchurch in 1999. The property provided a family home. The adjoining farm was initially stocked with deer.
The High Court was told the two separated in 2012 and their marriage dissolved in 2016. She continued to live at the property running the farm while her husband lived in Christchurch. She was convicted under the Animal Welfare Act in 2021 after stock died, left without adequate food or water. The sentencing report described her as suffering excessive anxiety and worry which led to her incapacity to make decisions and complete tasks.
Throughout this time Mr Cole ensured Beltons Road property costs were paid. Earthquake damage could not be made good because no agreement could be reached on repairs. An insurance payout following the Christchurch earthquake sequence was parked in a nominated partnership bank account requiring signatures from them both to fund any repairs.
Proposals over many years to wind up their business partnership and to sell Beltons Road came to naught. Mrs Cole failed to respond.
Partnerships are created by agreement. The most common way a partnership comes to an end is similarly by agreement between partners. Partnership Law Act provides a backstop when partners cannot agree.
In the High Court, Justice Dunningham ruled there were grounds to dissolve the Cole family partnership under any one of three grounds: the business could only be carried on at a loss, Mrs Cole had acted in such a way that it was not reasonably practicable for Mr Cole to remain in partnership with her, and it was just and equitable to dissolve the partnership.
Mrs Cole did not attend court to challenge dissolution of their partnership.
She was ordered to give up possession of Beltons Road. Justice Dunningham ordered the property be sold with proceeds of sale divided equally with a deduction from Mrs Cole’s share for costs incurred by Mr Cole to maintain the partnership assets and to remove dead stock.
The High Court registrar was authorised to sign all necessary legal documentation on behalf of Mrs Cole if she failed to do so.
Cole v. Cole – High Court (14.08.23)
23.136