In the midst of a relationship property dispute, Scott Lucas tried to put his former partner’s Ashburton property company into liquidation, failing because he was not a company creditor for the $226,000 claimed.
The High Court was told Lucas and his former partner Julianne Taylor are involved in a relationship property dispute after their six year relationship came to an end in 2019. Ms Taylor owns properties in Tancred Street, Ashburton, through her company Avetar Properties Ltd.
Evidence was given of each paying part of their income into an Avetar bank account during their relationship, with the account used for personal and household expenditure.
After they parted, and with a Family Court relationship property hearing scheduled, Mr Lucas claimed he was owed some $226,000 by Avetar Properties. He sued, seeking to put Avetar into liquidation.
Mr Lucas said the debt claimed from Avetar arose from a 2012 contract recalibrating equity holdings in a company called Annona Holdings Ltd. Companies Office records state Mr Lucas and Ms Taylor are currently 50/50 shareholders of Annona. The 2012 deal saw a third shareholder being bought out. Avetar was not a party to the Annona equity reshuffle.
To succeed in his application to have Avetar Properties into liquidation, Mr Lucas had to prove he was a creditor of Avetar and that Avetar was insolvent, unable to pay its debts.
Associate judge Paulsen ruled there was no evidence that Mr Lucas advanced any funds to Avetar at the time of the Annona restructuring. The evidence was that Mr Lucas’ history of payments to Avetar amounted to no more than regular periodic payments as contributions to shared living expenses.
Avetar financial statements signed off by Mr Lucas at a time when he was a director did not list him as creditor for the amount now claimed.
In any event, Avetar is solvent, Judge Paulsen ruled. The court was told Avetar has net equity of some $67,500 in its Ashburton properties, mortgage payments are current and Avetar has $23,000 in the bank.
Lucas v. Avetar Properties Ltd – High Court (16.11.23)
24.013