Apple Fields chews over lost judgment

By Chris Hutching

Friday 14th July 2000

Listed property company Apple Fields has lost a High Court case seeking to unwind some aspects of a deal involving the sale of prime residential property in Styx, north of Christchurch.

The company has yet to take advice from its counsel, John Fogarty QC, about taking an appeal but Apple Fields directors are reluctant to let the matter drop because they feel some key legal issues were not addressed in the ruling by Justice John Hansen.

The key issue was whether financier Ken Smith acted properly in his role as mortgagee of the property and his involvement in the joint venture company with developer Robin Hughes who bought the land.

Justice Hansen concluded the complicated structure of the sale involving a series of contracts between several companies had benefited Apple Fields by $21 million because ANZ Bank wrote off $8 million of a debt it was owed.

He said Apple Fields wanted only part of the deal unwound, not the bit involving the write-off.

Justice Hansen said Apple Fields was being opportunistic in trying to take advantage of the unusual situation after the event.

He criticised Apple Fields founder Tom Kain for trying to take financial advantage of what occurred at the time by asking for more money for an adjacent block of land he owned. Mr Kain has refused to settle the sale.

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