St John's six-year battle over pokies nears big day

A six-year battle by the Order of St John Northern Regional Trust to seek about $600,000 damages from the former operator of pokie machines at three South Auckland sites could soon reach court.

Pre-trial applications have resulted in action against Gemini 10, Twins 10, June 10 and their director Qin Rui Kenneth John Lu dragging on for more than six years.

In the most recent application, Justice Hugh Williams said there had been a plethora of applications over the years, mostly by the defendants, resulting in a "thoroughly unsatisfactory interlocutory history".

Now, however, it appeared a date for the full court hearing could be fixed. The case is expected to take two weeks when it finally reaches court.

St John installed 54 pokies at sites at Hunters Corner, Mangere East and Manurewa operated by the companies of which Mr Lu was a director.

Under the agreement St John was to pay a weekly space rental and the defendants had to account for profits.

A clause prevented the defendants selling their businesses unless the purchaser agreed to the same terms.

St John claims the companies sold the businesses without ensuring such an agreement had been reached.

They also alleged the companies did not account for part of the gaming machine profits.

Mr Lu's companies denied the allegations and responded with a $6 million counterclaim.

The nub of the dispute is who breached the agreement first - Mr Lu's companies by selling without getting the purchasers to sign a similar agreement, or St John by removing the gaming machines.

In one of the many previous hearings, the defendants alleged St John was "reluctant to approve the contract for [the three companies] because the director was of Chinese ethnicity".

St John denied the allegations.

Justice Williams dismissed an application by Mr Lu for a stay on the counterclaims to be rescinded.

Such an application had been abandoned in November 2005 and there was little reason to let Mr Lu reverse his stance when the issues remained unaltered.

- NZPA