A four year battle to recover two million dollars allegedly spirited across the Tasman by Eversons International director Evan Stewart continues with Eversons’ liquidators claiming Stewart’s failure to front up with a promised one million dollar settlement means he is now liable to pay the full two million.
Christchurch-based Eversons International Ltd enjoyed a brief moment in the sun before retail sale of so-called legal highs was prohibited by government in May 2014.
Four years later, Eversons was in liquidation.
Inland Revenue claims some four million dollars for unpaid taxes and late payment penalties.
It has taken liquidators from KPMG several trips to court in efforts to get information from director Evan Stewart about what happened to company cash. Liquidators claim Mr Stewart took some $2.7 million from the company before it went into liquidation.
Legal action against Mr Stewart was settled with an out-of-court agreement. He acknowledged owing Eversons two million dollars and the liquidators agreed to take one million dollars in full settlement.
Liquidators are now back in court claiming Mr Stewart has defaulted on his promise to pay one million dollars and is in turn now liable to pay the full two million dollars.
Mr Stewart responded by suing KPMG, alleging fraud and false accounting. In August 2023, Justice Churchman dismissed this claim, saying Mr Stewart appeared to have misunderstood KPMG’s entirely conventional accounting procedures in reconstructing the true state of Eversons financial position.
Separately, Mr Stewart claimed he was fully complying with terms of the out-of-court agreement. Evidence was given that some, but not all, of his required scheduled $80,000 payments had been made. As at late 2022, Mr Stewart had paid $280,000.
A court hearing for the liquidators’ claim seeking recovery of the full two million dollars was delayed multiple times, with Mr Stewart saying he was taking a private prosecution against KPMG. The Court of Appeal was told there is no evidence of a private prosecution ever being filed.
High Court hearings were hampered by the fact Mr Stewart was acting for himself and had filed court papers described as ‘making little sense.’ With liquidators saying the High Court had ruled against Mr Stewart and that he owed Eversons two million dollars, Mr Stewart set about filing an appeal. This appeal was filed sixteen days out of time.
The Court of Appeal ruled Mr Stewart was entitled to his day in court. Liquidators were not prejudiced by a sixteen day delay.
To be decided on appeal is whether Mr Stewart had failed to comply with the one million dollar settlement and, if so, were the liquidators then entitled to sue for the full two million.
Stewart v. Eversons International Ltd – Court of Appeal (11.04.24)
24.089