Former Bella Vista director Danny Cancian says he will appeal a more than $1 million judgement against him.
Photo / File
Former Bella Vista Homes director Danny Cancian says he will appeal a $1 million-plus judgment against him.
Building supplies company Carters sued the developer over unpaid bills of $1.078m racked up by Bella Vista Homes, which is in liquidation following the failure of its subdivision in The Lakes, Tauranga.
The case - which had been dragging through the legal system since late 2017 - was heard in the High Court at Tauranga last month, with Cancian defending himself.
Carters, a division of Carter Holt Harvey, argued Cancian was personally liable for his former business' bill because he signed a personal guarantee for a line of trade credit.
Cancian, however, argued Carters led him to believe his liability would be limited to $50,000 and that the credit limit was raised without his knowledge.
In his reserved decision, Judge Edwin Wylie said he found aspects of Cancian's evidence "self-serving" and "uncorroborated" and that his version of events made "little commercial sense".
"Why would Carters agreed to extend a credit limit to Bella Vista of $800,000, if Mr Cancian's liability, as its sole director, was limited to $50,000?"
He said Cancian's evidence in court that he did not read or check the deed of guarantee and indemnity, trusting the Carters representative, was "implausible".
The judge also found discrepancies in evidence Cancian filed.
"I was left with the clear impression that Mr Cancian was making up matters as he went along.
"It struck me that Mr Cancian was endeavouring to grasp at any passing straw in an endeavour to back up his argument."
Judge Wylie said one piece of Cancian's evidence was, in his view, "fabricated" and Cancian "did not strike [him] as a credible witness".
"Mr Cancian's evidence overall did not impress me. I gained the impression that he was seeking to attribute the blame for Bella Vista's ultimate collapse on other persons/entities, and to distance himself from any responsibility for what occurred."
Judgement was granted in favour of Carters and against Cancian in the amount of $1.078m, plus interest.
Cancian told the Bay of Plenty Times he had filed an appeal against the judgment today.
The former mayoral candidate, who has said he is eyeing a run at the newly vacant seat on Tauranga City Council, spent more than a month in court earlier this year fighting Building Act charges brought by the council over the failed development at the Lakes.
Judge Paul Mabey's reserved decision in that case has yet to be released.