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A dispute over historic Vulcan Lane hotels has resulted in the High Court at Auckland stepping in to freeze the assets.
The court made the unusual move on the pubs after a legal row between Auckland real estate investor Jason Meadows and Richard Lyon, son of former property developer Mark Lyon.
The pubs will continue to operate.
Osiris Property Investments Number 1, whose director is Richard Lyon, took action against Meadows' London Property Investments over the properties.
The dispute involves ownership of the Occidental Belgian Beer Cafe, O'Carrolls Irish Bar and the Queen's Ferry Hotel, all on Vulcan Lane. Meadows said he bought the buildings in September 2003 and was now trying to have them freed from receivership.
But Rick Phillips, the solicitor representing Osiris, said Meadows never owned the properties.
"I'm utterly shattered by the fact that Mr Meadows alleges he owns the properties. He never paid for them," Phillips said.
"Osiris was the beneficial owner of all the shares in London Property Investments, not Mr Meadows or his trustee company, Olivers Trustee. This is a matter to be determined by the proceedings currently before the High Court. In these proceedings, Osiris alleges breaches by Mr Meadows of his duties as a director and misappropriation of moneys and asks him to account."
In January, the High Court appointed John Gilbert, of C&C Strategic, as receiver of Meadows' company, freezing the assets.
Gilbert said he could not comment on the issues but would produce his first report on the receivership by April 13 and a half-year report by October 10.
Meadows, of property investor and merchant bank Bearing South, said a shop in the MidCity on Queen St was also involved in the litigation which he was challenging.
"I'm really disappointed all this has happened," he said yesterday, adding that he regretted buying the properties because of the dispute.
"I certainly would not do it again because of the people I've been involved with." A receiver had been appointed because he had not attended court on the day the matter was heard.
Meadows said he bought several properties from Lyon in September 2003 for more than $8 million, including the Craigs Building at 100 Queen St and a Newmarket property.
He added the litigation was only over the hotels and the MidCity property.
"I entered into a sale and purchase agreement with Mark Lyon who was doing his best to avoid a mortgagee sale," Meadows said. "There was an agreement he could buy them back under certain terms and conditions but that expired."
Lyon made a fortune developing Auckland CBD properties before having skirmishes with the law. His high-profile developments include the Chancery retail and office development at the foot of the Metropolis tower, completed in November 2000.
Lyon has rarely been out of the news since 2002 after fires at a number of his properties, including his multi-million-dollar Epsom home, which backs on to Government House.
In 2002, police named him a fugitive from the law and warned people he was too dangerous to approach
In 2003, he was granted bail and allowed to live in Rarotonga while awaiting a weapons and ammunition charges trial. His alleged behaviour in the Cook Islands resulted in more media coverage and there were calls for him to be deported.
Vulcan treasures
Three pubs are at the centre of the dispute:
* The Occidental Hotel, built in 1870, is treasured for its Victorian Italianate architecture.
* The Queen's Ferry Tavern was built in 1882.
* O'Carrolls Irish Bar at 10 Vulcan Lane stands between them.
