Businessman fails to get dispute settled in NZ court

A multimillion-dollar dispute involving one of the country's richest men is to be sorted out by the South African courts.

Dutch consul Alex van Heeren is being sued by his former business partner Michael Kidd for half the empire the pair built in the 1970s and 80s.

Eight years ago, Justice Robert Smellie in the High Court at Auckland stayed Mr Kidd's action until the South African courts had ruled on a disputed indemnity document covering the split of their business ventures.

This week, Justice Christopher Allan dismissed an application by Mr Kidd's lawyers for the stay to be lifted.

The pair jointly owned the exclusive Huka Lodge near Taupo as well as other enterprises in New Zealand and around the world with assets of US$25 million to $30 million ($36 million to ($43 million).

However, the men fell out and decided to go their separate ways. Mr Kidd said that he received only US$3 million from the businesses. He claimed he was entitled to assets of around US$15 million.

He said that "had he known the effect of the Randburg [indemnity] documents was to preclude him from making any further claim he would never have signed them".

The document also said that any dispute had to be heard in South African courts.

Mr Kidd's lawyers argued in front of Justice Allan that the stay should be lifted because circumstances had changed since the original order, but Justice Allan rejected the application.