Kenyon and Charlotte Clarke’s lack of lawyer could stall Financial Markets Authority action

Kenyon and Charlotte Clarke in happier times, on the set of their reality show The Property Developers.

The inability of Kenyon and Charlotte Clarke, of insolvent property business Du Val, to secure a lawyer has meant Financial Market Authority action against them for asset preservation orders could be delayed.

But the case being brought against them by receivers and statutory managers PwC - which wants to escape paying rent on the five-bedroom three-bathroom Victoria Ave, Remuera house where the Clarkes Live - is set to go ahead early next month despite them not having a lawyer.

A decision made yesterday by Justice Neil Campbell in the High Court at Auckland said the couple was without legal representation in the case brought against them and their companies.

The FMA case is due to start on December 3 and the Clarkes were reported last month to have applied for legal aid.

Not having a lawyer has thrown a spanner in the works on that FMA front.

“Given that the Clarkes remain without legal representation, the FMA accepts that it is not feasible for that hearing to proceed,” the decision released this afternoon said.

But the couple needed to demonstrate they had tried to get a lawyer including legal aid, the judge said.

“Because the Clarkes are entitled only to a reasonable opportunity to obtain representation before the FMA’s applications are heard, I am also of the view that directions should be made to ensure that the court is informed of the efforts made by the Clarkes to obtain representation,” the decision said.

Without a lawyer, the applications scheduled to be heard on December 3 would be adjourned.

If the couple do get legal aid by November 29, they must file their notice of opposition to the authority’s applications, the judge said.

Those with affidavits must be with the court by December 6, the judge said.

Also on December 3, the court is due to hear the PwC receiver and statutory manager’s application for an order. That is over PwC’s application to be excused from paying rent on the Clarkes’ Remuera home.

The Clarkes have also sought for that hearing be adjourned to the New Year to allow them time to get a lawyer.

But the judge didn’t agree to that.

He said the receivers’ preference was that the hearing should proceed so it will.

The Clarkes have previously been represented by Davey Salmon KC and Lee SalmonLong partner Daniel Nilsson.

Today’s minute from the court named prospective counsel for the Clarkes. They are Nick Williams at Britomart Chambers, Paul Murray of Ākarana Chambers and Katie Hogan of City Chambers.

The court decision comes the same day that Kenyon Clarke’s Instagram post emerged.

He says one of his daughters has been unable to sleep for three months after the raid on the family’s Remuera home.

Writing in a now-deleted post, Clarke complained about the effects on his family after police and FMA action in August.

“My daughter woke up to find an armed cop outside her bedroom door. She still can’t sleep three months later because of the trauma of that day,” Clarke wrote in an Instagram post last night.

His post ended with a picture of last night’s Coldplay concert at Eden Park.

John Fisk, who was one of the receivers of Du Val entities, estimated in late August the businesses owed about $250 million and expressed serious concern about irregular accounting entries that created assets that may not be legitimate.

Kenyon Clarke’s post overnight called for charges against him to go to a hearing, saying he would have a “biblical” response to action against him.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.