Database debacle returns to court

The long-running battle between the Real Estate Institute and a data-services company over the abandoned Project Confederation deal is about to be revived, after the firm lodged an appeal to a High Court ruling.

The souring of a business relationship between the institute and RPNZ - formerly QVRP Information - led to the first round in court last August.

Through Project Confederation, the organisations intended to build the country's largest property information database. Through Quotable Value, RPNZ had access to information on 1.8 million properties and the institute was to add its property sales data.

But the deal fell apart and RPNZ went to court, claiming $996,509 in damages for breach of contract and duty of good faith.

After a four-day hearing in the High Court at Auckland last August, Justice Rhys Harrison dismissed RPNZ's case and issued a judgment criticising RPNZ chief executive Nigel Jeffries and the claims.

RPNZ had to pay the institute's costs and disbursements for two counsel, as well as an additional $5000 cash.

Justice Harrison made this award to reimburse the costs the institute incurred in identifying and preparing challenges to "plainly inadmissible material included in Mr Jeffries' brief and the written statements tendered from a number of other prospective witnesses whose evidence was not material to the claims".

But he said his main reason for ruling against RPNZ was that it had "fallen well short of proving that the parties intended to bind themselves formally". The firm had taken a calculated risk in proceeding with work on Project Confederation without the security of a written contact.

"The company's anxiety to take advantage of what it perceived as an attractive financial opportunity apparently overrode the dictates of commercial prudence, leading it to act in the hope or expectation that a formal contract would be concluded in due course," Justice Harrison wrote.

He rejected Jeffries' attempts to rationalise the firm's conduct by blaming time pressures imposed by the institute in anticipation of termination of the contact.

Institute president Howard Morley said yesterday the High Court judgment was an accurate assessment of the institute's position and the court had found in his organisation's favour based on the evidence it put forward.

Jeffries said he could not specify the exact grounds for the appeal nor discuss the case.

It is expected to go to court by August or September.

Former institute executive director Boud Hammelburg counted defending his organisation against RPNZ as one of his proudest career moments and said he was pleased with the outcome.

The institute is yet to appoint a new executive director after Hammelburg resigned just before Christmas.

Morley said candidates were being interviewed and an appointment would be made soon.

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