Hawke's Bay court: Six years into bitter dispute, Stefan Lepionka bankrupts Gareth Paterson

Bankrupt developer Garth Paterson. Photo / Supplied

After six years in the courts, a Hawke's Bay developer has been bankrupted - again - by an orange juice mogul.

The High Court at Napier adjudicated Gareth Paterson bankrupt on December 16, following applications by companies connected to Charlie's juice co-founder Stefan Lepionka seeking payment of more than $61,000 in court cost awards.

The cost awards followed years of bitter litigation after Paterson's development at Horseshoe Bend in the Tukituki Valley ran into financial problems. Lepionka took over Westpac's mortgage in a bid to protect a $463,000 deposit paid for four subdivision lots.

A 2017 ruling by the High Court found Paterson's legal challenges to Lepionka largely failed, but proceedings continued until a hearing last August determined Paterson's continued self-represented rearguard efforts amounted to vexatious litigation.

Justice Jan-Marie Doogue ruled in August Paterson was "impecunious" and had consistently "displayed a willingness" to bring proceedings "that have no prospect of success." She ordered him barred from continuing or initiating any civil proceedings relating to the development.

At the bankruptcy hearing at the High Court at Napier in December, Paterson represented himself and was allowed by associate judge Kenneth Johnston to oppose the bankruptcy.

However, his opposition was ruled to largely be "new twists on some of the arguments Mr Paterson has run in the past," and found his claim to not be insolvent lacked evidence.

The bankruptcy is Paterson's second, having first been ruled insolvent in 2016 over failing to pay court costs, and he had only been discharged from these restrictions in mid-2019.