Three-way bun fight over $11.2 million

Adlam was made a member of New Zealand Order of Merit in 2008 for her leadership, business and community roles. Photo / John Borren

A businesswoman, who is a member of the New Zealand Order of Merit, has successfully appealed an order requiring her to return $11.2 million to a Maori land trust.

A three-way bun fight is now likely over the money when the case returns to the Maori Land Court.

That same court last year found that Bev Adlam had "committed a blatant breach of trust" by taking money for self-gain from the process of developing two geothermal power stations on family land in Kawerau.

Adlam was then ordered to pay $11.2 million from the sale of one station to a trust which administers the land it was on.

She was also ordered to pay it $2.4 million which she received from the other energy project.

The businesswoman, who was instrumental in developing the stations, was also ordered to pay $823,000 in interest.

Adlam appealed the decision to the Maori Appellate Court, which heard her case last August.

In particular, she challenged the order that she was to pay the entire $11.2 million of profit to the administering trust - known as the Bath Trust.

She argued it was first necessary to establish which part of these profits was attributable to the use of assets of another trust that administered neighbouring land which the station used to generate power.

The Maori Appellate Court, made of up five judges, partly upheld Adlam's appeal.

The court revoked the earlier order requiring Adlam to account to the Bath Trust for the entire $11.2 profit.

It sent the proceedings back to the Maori Land Court to determine what portion of the profit is property of the Bath Trust.

The judges commented in the decision, released late last month, that there will likely to be three competing claims to the profit from Adlam and the two trusts.

One of Adlam's lawyers, Dan Hughes, said her position was that any funds not due to the Bath Trust would be hers to keep.

"Ms Adlam is very pleased with the result and we are hopeful this will allow her significant contribution to be acknowledged. As John Billington QC said to the Court, Ms Adlam created a 'silk purse from a pig's ear' for her family," Hughes told the Herald.

While Adlam had some success on her appeal, she lost a cross-appeal concerning interest payable for funds associated with one of the projects.

The appellate court said costs should lie where they fall, which means each party pays for its own legal bills.

Adlam was made a member of New Zealand Order of Merit in 2008 for her leadership, business and community roles.