With relationship property claims stalled in the Family Court, Linda Smiley joined court-appointed receivers having the High Court wind up an Ohinewai farming company. She alleges former partner Keith Stark is colluding with others to drive down the value of relationship property.
Calculation of her relationship property entitlements depends, in part, on final distribution of Keith Stark’s late father’s estate.
There have been complaints about Keith’s management of a seventy hectare Waikato farm, still part owned by his late father’s estate. Loans Keith owes the estate are also in dispute.
Last year, the farm was valued at between $2.6 million and three million dollars.
Estate assets have been under control of court-appointed receivers since 2023. They told the High Court a recent attempt to sell the farm failed, with Keith trespassing real estate agents from the property.
What followed was an allegedly bogus offer to buy, from an individual suspected to be allied with the ‘sovereign citizen’ movement.
So-called sovereign citizens deny the state has any control over their lives, putting up pseudo-legal arguments which purport to separate their state-registered name from their personal sovereign existence. A tenet of their beliefs is that they are not bound by government rules.
Ms Smiley told the High Court she suspects Keith Stark is colluding to drive down the farm sale price, affecting her relationship property claim.
Evidence was given that occupiers of a residential property on the farm are suspected to have links to the sovereign citizen movement.
The High Court was told receivers handling Keith Stark’s late father’s assets had found it impossible to reach agreement on winding up the estate.
Central to the dispute is Waitotara Farms Ltd. The estate is a minority shareholder in Waitotara Farms.
Keith Stark and Linda Smiley are the two directors. Any Waitotara decision requires their joint approval.
Receivers’ previous attempt to force sale of farming assets by putting Waitotara Farms into liquidation was put on hold with Keith and Linda jointly agreeing to support plans for sale of the farm.
This agreement led to an October 2024 mediation agreement, signed by all parties, setting out a process for sale.
The High Court was told Keith then deliberately obstructed access. A scheduled auction was cancelled.
With receivers’ liquidation application then renewed, Keith alleged the receivers ‘continued to exceed their authority,’ were running up excessive bills, were making false and misleading statements and were blocking payment of his wages.
He asked liquidation be delayed, enabling him to get legal advice, and to belatedly file a statement of defence.
Associate Judge Sussock ordered Waitotara Farms Ltd into liquidation immediately. It was ‘just and equitable’ that liquidation take place, enabling sale of farm assets and distribution of Keith’s father’s estate.
She dismissed claims by Keith that liquidation was not necessary. He had found a buyer for the farm, he claimed.
There were doubts about the substance of this offer.
There was no deposit payable. There was a one month ‘due diligence’ clause, with no obligation to buy. The buyer’s financial circumstances were unknown.
Receivers said the offer was no better than a free option, leaving open the opportunity to come back later and negotiate down the offer price.
Evidence was given that the offer to buy was in the name of an individual who is part-owner of a Huntly property used as the contact address for a non-existent court, oft-named in sovereign citizen pseudo-legal demands: the Royal Crown Court of Equity in Exchequer.
If it was intended to make a bona fide offer for the farm, such an offer can be made now to the liquidator, Judge Sussock said.
Khov v. Waitotara Farms Ltd – High Court (1.07.25)
25.150