Hanover finance case adjourned until October

Photo / Brett Phibbs.

Hanover Finance will return to the High Court in October over a dispute about $697.96 a Bay of Plenty man claims is owed to his daughter.

Michael Fallows, of Te Puke, lodged a claim with the Disputes Tribunal in Tauranga, saying Hanover misled his family by lying in its prospectus.

He had put $500 on term deposit with Hanover in 2007 for his 14-year-old daughter Katie.

The investment was due to mature in January 2012. Fallows is claiming the principal plus interest at 8.35 per cent.

Hanover filed actions in the High Court, saying the tribunal did not have jurisdiction to decide the matter.

The company also said it cannot pay the money because of a moratorium agreed with investors.

The High Court at Auckland looked at Hanover's application today, and the matter was adjourned until October 28. The tribunal is due to hear Fallows' claim in Tauranga on September 14.

Hanover's legal compliance manager Angela MacDonald said that under the Securities Act, only the High Court could consider allegations of a misleading prospectus.

Hanover also said Fallows' claim was part of a campaign by Mark Cooper, a property developer it has been battling in the courts.

In a letter to the tribunal, Cooper said he had agreed to help Fallows, but was involved only as a witness.

- NZPA