Settlement awarded in pokies case

Ken Lu said the case has been a severe financial drain. Photo / Herald on Sunday

A former Auckland pub owner has been awarded a substantial settlement from St John after a seven-year legal battle over pokie machine money.

St John Northern Trust launched a multi-million dollar claim against Ken Lu in 2002 after he failed to ensure proceeds from gaming machines continued to go to the charity when he sold his three Manukau sports bars.

But Lu made a counterclaim against the trust in the High Court at Auckland, and received a settlement, believed to be more than $100,000.

Lu has been barred from speaking about the case, but in an earlier interview he said the case had been a severe financial drain.

Lu said the whole case was a "mistake", and his contract with St John had been taken up by the new owners within weeks of the original case against him.

He could not fathom why the charity had paid law firm Simpson Grierson to pursue him for so long.

"No trust spends that much money for no gain. If it was a company, fine, they can do what they want with their money. But it's a charity."

At the time he was considering a six-figure settlement offer from St John.

Stephen Franklin, St John northern general manager, said: "St John is pleased that the two parties have reached a settlement and we are both keen to move on."