Businessman fighting to keep home

A legal wrangle over a multi-million dollar Tukituki River lifestyle subdivision is heading to the Court of Appeal. Photo / Duncan Brown

Black Barn owner Andy Coltart is heading to the Court of Appeal to hang on to his home as lawyers argue over a multi-million dollar lifestyle subdivision his home is part of.

Court documents show the architect became a partner in the 25ha lifestyle subdivision, on Horseshoe Bend of the Tukituki River in rural Havelock North, in 2009.

The Kahuranaki Rd property was being turned into several titles by GLW Group Ltd, with Mr Coltart helping to complete the project.

They agreed Mr Coltart would have an option to buy the homestead lot on the subdivision, where he has lived with his wife since 2010, and would have a right to roam on common land. The partners fell out and Mr Coltart placed caveats on the homestead to protect his interests.

GLW agreed to sell four lots to Charlie's Juice Company founder Stefan Lepionka, who paid a deposit of $463,000, but the bank moved on the subdivision after GLW fell into financial difficulty.

Instead of losing his deposit, Lepionka formed a company which bought the mortgage from Westpac.

Mr Coltart offered to buy all the land for $6.93 million but the Lepionka company proceeded with its original agreement to purchase. Mr Lepionka said he believed the homestead was worth three times what Mr Coltart agreed to pay GLW for it. Mr Coltart said his costs could rise to $4.03 million and appraisals of the homestead lot from real estate agencies Bayleys and Sotheby's range its value from $1.84 million as a mortgagee sale to $2.7 million.

In August Lepionka's company successfully argued in the High Court in Auckland for Mr Coltart's caveats to be removed so the mortgagee sale could proceed. In October GLW owner Garth Paterson failed in a High Court in Auckland bid to stop the sale.

In the High Court in Napier last week an application to liquidate GLW was brought by Lepionka's company, but with more creditors coming on board the matter was put off until February. Also in Napier last week GLW and Lepionka's lawyers argued the technicalities of statutory-demand procedures, with the decision reserved. "These parties are embroiled in litigation all over the country," lawyer Matthew Lawson told the court. A second mortgagee has High Court action pending in Wellington against Lepionka.

Tenders close today on subdivision properties, with Mr Coltart's home advertised as sold and the house Mr Coltart designed for Mr Paterson sold.

Mr Coltart, who has a half interest in Black Barn, said he is appealing to the Court of Appeal after the High Court ordered the removal of his caveats "and other matters".