19 December 2023

Family Trust: Noyce v. Prendrell Investments Ltd

 

Last ditch efforts to prevent sale of a family trust’s prime asset in Auckland suburb Remuera were overridden by High Court orders that five caveats be removed and that aggrieved beneficiary Stuart Lobb and members of his wider family are not to further interfere in the sale.

The 2016 separation of Stuart Lobb and his then wife Verena Ryan has been followed by a bitter dispute over their former family home in Orakei Road held in a family trust: the Lothbury Trust.

A series of cases saw the High Court place control of Lothbury in hands of Auckland chartered accountant Digby Noyce.  He has orders to sell Orakei Road and divide the net proceeds.  Mr Lobb has fought the process every step of the way.

Final resolution looked close with a sale at auction for $3.69 million to buyer Pendrell Investments Ltd.  Settlement was scheduled for October 2023.

The High Court was told use of Pendrell Investments as a front enabled Lobb family interests to register and bid at the auction.  At time of the auction, Pendrell’s owner, according to Companies Office records, was a Philip Hardiman.  Ownership was transferred to interests associated with Mr Lobb after the auction and some three weeks before Pendrell had to pay.

Pendrell Investments failed to settle on due date.  The sale was cancelled. Pendrell forfeited its deposit.

Mr Noyce then negotiated a further sale, selling to an unsuccessful auction bidder at a price of $3.05 million.  This second sale was due to settle on 20 December 2023.  Settlement was at risk, with five caveats registered against title to Orakei Road; caveats lodged by Mr Lobb personally, his father and entities related to Mr Lobb.  The second buyer was not going to hand over payment while facing a legal morass with others claiming an interest in the property.  Mr Noyce applied to have the caveats removed.

A court hearing was delayed by a bomb threat directed at the Auckland High Court.

Justice Powell handed down his ruling later, one day prior to scheduled payment by the second purchaser.  All five caveats were ordered removed.  The various claims to an interest in Orakei Road had either already been dismissed following earlier court hearings, or were not supported by any evidence, or the claimants had no legal rights against the property.  Mr Lobb, members of the wider Lobb family and any entities of which they are directors or shareholders were prohibited from lodging further caveats against title to Orakei Road.

Noyce v. Pendrell Investments Ltd – High Court (19.12.23)

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