Competing claims to over ten million dollars revenue from sale in New Zealand of used cars imported from Japan is being decided by courts in Japan. Robert Stone alleges his former joint venture partner Hohua Hemi wrongly took control of their Autoterminal Japan/New Zealand used car trade and must account for profits generated in New Zealand.
Stuck in the middle is Ken Quigley’s Jacanna Holdings Ltd, Auckland customs and freight forwarder left holding money each side claims.
Courts around the world have been called to deal with multiple claims in a decade-long dispute between Stone and Hemi.
The latest iteration sees interests associated with British Virgin Islands registered Autoterminal International Ltd suing in New Zealand, alleging Autoterminal was wrongly cut out of profits from New Zealand sales of imported Japanese used cars when a business controlled by Mr Hemi took over local distribution. Ultimate ownership of Autoterminal is opaque. Jacanna Holdings is the target in this claim.
Similar litigation is underway in Japan where Mr Stone alleges Mr Hemi breached duties owed as director of their jointly owned exporter IBC Japan by taking over IBC’s onward sales in New Zealand. On behalf of IBC Japan, Mr Stone claimed $18.4 million damages from Mr Hemi, alleging Mr Hemi breached fiduciary duties owed Japan IBC.
In Japan, Mr Stone was unsuccessful in round one. He had agreed to Mr Hemi’s separate New Zealand business activities, the Kyoto District Court ruled. Mr Stone has appealed this ruling.
Mr Quigley immediately applied to have New Zealand litigation against Jacanna Holdings put on hold. The Kyoto court ruling meant Mr Hemi’s separate New Zealand sales were lawful, he said. As a consequence, there was no chance of Autoterminal succeeding in its legal action against Jacanna Holdings, he claimed.
The New Zealand High Court imposed a temporary stay, to last until result is known of Mr Stone’s appeal in Japan. A further loss on appeal in Japan for Mr Stone will likely end any chance of success by Autoterminal in its current New Zealand claim against Jacanna Holdings.
Pacific Auto Carrier (NZ) Ltd v. Jacanna Holdings Ltd – High Court (31.10.23)
24.002