Northlake, Winton Land's huge Wanaka development. Photo / Winton Land
Northlake, Winton Land's huge Wanaka development. Photo / Winton Land
NZX-listed Winton Land’s 972-residential Wānaka development has sparked litigation, the developer suing the builder to try recoup more than $500,000 paid for work at the partly developed hub.
The business headed by Chris Meehan is developing 14 new communities including many retirement villages here and in Australia, including the newNorthlake residential hub in the southern lakeside town.
In its August 22 investor presentation with its annual result, Winton said it had sold 83 residential units at Northlake in the year to June 30. It is creating lots, then developing apartments and townhouses on sites.
So far, 634 Northlake residential lots have been developed and settled, bulk earthworks for future stages are completed and the business aims to continue selling properties at its new village centre.
But trouble with that partly built scheme resulted in an August 28 hearing when Winton’s Northlake Investments took action against Civil Construction, which in turn made its own claim against Northlake.
Northlake engaged Civil to do the bulk earthworks but in court, sought to recoup $591,000 paid to Civil after a ruling on who was in the right.
Associate Judge Owen Paulsen in the High Court at Invercargill said Civil applied to strike out Northlake’s claim for the money and argued there was no case for Northlake to seek recovery of amounts it had paid.
Trouble arose when Covid broke out and most NZ construction works were suspended.
The pandemic and lockdowns meant the builder couldn’t carry on due to those restrictions.
Another dispute arose between the two parties over a stage of the works where 39 lots were being created.
Last July, an adjudicator ruled Northlake had to pay Civil $471,000 over the Covid claim and a further $17,000 over the stage claim for the 39 lots.
Civil initiated enforcement action to get the money so Northlake paid in full last July.
But at the same time, Northlake’s lawyers wrote to Civil’s lawyers saying although it had been obliged under the Construction Contracts Act to pay the money, it did not accept any liability.
The judge said some aspects of the case didn’t stack up.
“Even now, Northlake accepts that the adjudication was ‘perfectly valid’, which is to my mind irreconcilable with the case it advances that the determination is pointless and of no effect and that it is entitled to recover the payment,” Associate Judge Paulsen said.
“The position might well be different if Northlake had the disputes that were determined by the adjudicator on an interim basis substantively and finally determined in its favour in other proceedings, but it has not yet taken that course.”
Northlake had not supported its claim and failed to satisfy the judge.
Civil argued Northlake didn’t give notice of intention to dispute the adjudication determination within one month or at all.
The judge dismissed Northlake’s application for summary judgment against Civil and Civil’s application for summary judgment against Northlake, but assigned the matter for further case management teleconferencing at a date yet to be fixed.
Justine Hollows, Winton’s general counsel and corporate services general manager, said today after the decision was released that both parties were unsuccessful.
“We are amending the statement of claim and intend to continue with our underlying substantive claim, together with assessing additional appeal options,” Hollows said.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
