With transactions in excess of seventeen million dollars in dispute, the High Court ruled companies owned by the Auckland Nahkle family can face liquidation because of a management deadlock, overriding in-house rules requiring family disputes first go to arbitration. Matriarch Henriette Nahkle alleges son Daniel has misappropriated family money; he claims a 2015 family agreement gave him control over company business assets.
Family riches came from property development, later reinvested in land around Kingseat in South Auckland held in the names of Karaka Estate Ltd and Byerley Park Ltd. Mother and son are directors.
Byerley Park currently runs a horse breeding and training facility; trading at a loss, the High Court was told.
Henriette alleges Daniel has failed to properly account for his use of family funds. In turn, Daniel says all disagreements were resolved back in 2015, with an agreement giving him ownership of family assets.
The breadth and effect of this 2015 agreement is disputed.
Subsequently, Henriette blocked transfer of any further family funds to Daniel.
A 2024 mediation failed to resolve family differences.
When Henriette took Companies Act steps to wind up both Karaka Estate and Byerley Park on ‘just and equitable’ grounds, Daniel claimed this was premature; family trust deeds require their ongoing dispute first to go to arbitration, he said.
Associate Judge Brittain ruled an arbitration clause might see the High Court defer a liquidation hearing, but such a clause cannot override Companies Act rights to seek liquidation.
It is not clear how any issues suitable for arbitration could be defined in this case, he said. Management is deadlocked, with an irretrievable breakdown of trust between mother and son as directors.
He ruled their dispute be set down for a Companies Act hearing, to determine whether liquidation of the two companies is needed to resolve the deadlock.
Nahkle v. Karaka Estate Ltd – High Court (6.11.25)
26.005