Brothers' bitter battle winds on

The long legal battle between estranged property developer brothers Greg and Rod Nielsen, described by a High Court judge as a "procedural nightmare", has stretched out even further.

Greg Nielsen's attempt to have his brother bankrupted over a $2 million debt has been adjourned, with Greg granted leave to amend his application and Rod given 21 days to respond.

The dispute, which has its roots in a falling-out between the brothers in the mid-2000s, has become so complex that even the judiciary appears perplexed.

Justice John Priestly said in November 2007 that an application by Greg Nielsen to recall an earlier judgment of his had "unearthed a procedural nightmare".

Last September Justice John Hansen described the wranglings as "a matter with a long and unfortunate procedural history".

It is also extremely bitter. In June 2007 Rod wrote to Greg: "If I hear of one more incident of you even thinking of stirring things up, and I mean ANYTHING, I will inact [sic] my fury on to you ... This is the only time I will warn you and be so lenient."

Two strands of the dispute have effectively converged. In 2007 building supplies company Dysart Timbers sought to bankrupt Rod Nielsen over a $260,000 debt relating to the brothers' joint property developing activities.

A compromise was apparently reached, but that then fell apart with both brothers challenging it. Last August Greg Nielsen issued a bankruptcy notice against Rod for $148,000 in unpaid consultancy fees, and before it could be served also joined the Dysart bankruptcy application.

Rod Nielsen has said that even though he is still appealing the Dysart matter to the Supreme Court he has paid Dysarts the $260,000.

Meanwhile, Greg has been substituted as creditor in the Dysart Timbers' petition. He says Rod owes him $2 million dating from a 2005 agreement that was supposed to settle all disputes between the two.

Rod had agreed to buy Greg's half- share in a Queenstown development and pay him $2000 a week in consultancy fees. The debt wasn't settled and in August the High Court ordered Rod to pay up.