'Division of spoils' partnership battle goes back to court

An acrimonious dispute over the break-up of a partnership involving one of the country's wealthiest men is back before the High Court at Auckland.

Alex van Heeren, the honorary Dutch consul to New Zealand, and his former business associate, Welshman Michael David Kidd, once jointly owned the upmarket Huka Lodge in Taupo.

They also had a substantial holding in Wellesley Holdings in the 1980s, a major stake in Optech International Ltd and owned Dolphin Island in Fiji.

Mr Kidd claims when the partnership broke up in the early 1990s he was cheated out of millions of dollars.

He says he received only US$3 million ($4.14 million) out of a partnership valued at US$38.5 million.

Mr van Heeren says the division of spoils was completely fair.

Mr Kidd was said to have signed a "full and final settlement" with Mr van Heeren, but Mr Kidd has maintained that the document was obtained by fraud and false pretences.

Eight years ago Justice Robert Smellie in the High Court at Auckland granted Mr van Heeren a stay of the action until a court in South Africa, where the pair's business dealings started, had decided on the disputed indemnity document, or until further order of the New Zealand High Court.

Yesterday, Mr Kidd's lawyer, Brent O'Callahan, went back to court asking Justice Christopher Allan to lift Justice Smellie's stay.

Mr O'Callahan said circumstances had changed significantly.

He said in New Zealand Mr van Heeren said there was a partnership, but in South Africa, he said there was not.

He also said that, originally, Mr van Heeren described Mr Kidd's claim as nothing more than a "campaign of extortion" by Mr Kidd's English private detective, Bryan Cooper.

But he said Mr van Heeren's extortion claim could now no longer be advanced.

He told the judge that Mr Kidd had been short-changed in the partnership split.

Mr O'Callahan itemised what Mr Kidd received, including 30kg of gold.

He said Mr Kidd had expected Mr van Heeren to account for the assets, but he was "brushed off".

Mr van Heeren is represented by Chris Hodson, QC.