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A High Court judge has ordered more than $66,000 to be held in a lawyer's trust account until a dispute between a body corporate for an Auckland apartment block and an associated company of property specialist Blue Chip is resolved.
The case was the second of two actions brought against Bribanc Property in the High Court yesterday. Both sought to apply for an interim injunction against the firm.
The first case, brought by Tokoroa businessman Jack Hoggard, looks likely to be settled out of court but has been set down for a second hearing on February 7. The second case, brought by body corporate 360485, is expected to proceed.
Lawyer Paul Dale said the body corporate had "serious concerns" about Bribanc and a sum of money, initially thought to be $80,000, which had been passed into the control of Bribanc.
"The body corporate has significant financial responsibility and its committee are concerned they have no control over the body corporate funds that have been passed on to Bribanc. They also have concerns in general about Bribanc in terms of their ongoing administration," Dale said.
The case relates to a development in Auckland's Mahuhu Crescent, Quay Park, where Bribanc is the administrator or secretary for the body corporate and also manages around 25 properties on behalf of the owners.
Dale said he had received further notification this week that the money in contention was around $66,000. Bribanc lawyer Merran Chisholm said the money in contention was being held in her firm's trust account.
Chisholm said her client's major concern was that there had been an abuse of power by the body corporate's committee which she said had "highjacked" the body corporate because it had failed to call a meeting of the property owners to gain approval to take the court action.
Even if a special meeting was called she said majority approval was unlikely because Bribanc, as the property manager of the building, also has a 75 per cent proxy vote on behalf of the owners. She said her intention was to apply to have the case struck out of court.
But Dale said he believed this concern could be overturned by even one property owner wanting to change administrator and he asked the judge for a Michael David Dickey to be added to the list of plaintiffs.
Justice Rodney Hansen said the only matter of urgency that needed to be dealt with immediately was the $66,000 and he ordered that it continue to be held in the Walters Law trust account. He agreed to allow Dickey to be added to the plaintiffs and gave him until January 14 to allow Dickey to put together an affidavit for the case and any claim of damages.
Bribanc has until January 21 to file its affidavit in opposition and to file for the case to be struck out.
Blue Chip has been at the centre of complaints lately over leaky apartments, delays in rental income and long waiting times for the delivery of properties where deposits were paid.
Bribanc manages Blue Chip investors' properties.
