Dooley v Sturgess Consulting Ltd

IN THE HIGH COURT OF NEW ZEALAND NELSON REGISTRY

CIV 2013-442-278 [2016] NZHC 1905

UNDER

the Property Law Act 2007

BETWEEN

BRUCE ROSS DOOLEY AND JOHN ROBIN HOLMES AS TRUSTEES OF THE BOLINAS TRUST

Plaintiffs

AND

STURGESS CONSULTING LIMITED Defendant

Hearing:	9 and 10 February 2016
Appearances:	R D C Hindle and L Almoayed for the plaintiffs J M Fitchett for the defendant
Judgment:	16 August 2016
Reissued:	26 August 2016
Effectivedate ofJudgment:	26 August 2016

JUDGMENT OF MALLON J

Table of contents

Introduction ....................................................................................................................................... [1] Background facts ............................................................................................................................... [2] The legislation .................................................................................................................................. [12] Compensation .................................................................................................................................. [15] Approach to compensation ........................................................................................................... [15] Case law examples ....................................................................................................................... [21] Conclusions from these cases ....................................................................................................... [38] Evidence as to negotiations .......................................................................................................... [42]

Do these negotiations assist with determining compensation ...................................................... [64] Valuation evidence........................................................................................................................ [68] Legal costs .................................................................................................................................... [84] My assessment .............................................................................................................................. [86]

Other terms ...................................................................................................................................... [96] Result .............................................................................................................................................. [100]

Postscript........................................................................................................................................ [101]

DOOLEY v STURGESS CONSULTING LIMITED [2016] NZHC 1905 [16 August 2016]

Introduction

[1]      The Bolinas Trust, represented by Dr Dooley, seeks a registered right of way over a small piece of road which is located on the property of Sturgess Consulting Limited (SCL), represented by Mr Sturgess.  The issue before me is the amount the Bolinas Trust must pay to SCL for the right of way.  This is to be determined under the landlocked land provisions in the Property Law Act 2007 (the Act).  Costs of this proceeding are also in issue.

Background facts

[2]      The parties own neighbouring properties in the Puramahoi area of Golden Bay (located in the north west of the South Island).  They are substantial properties with views over Golden Bay.   The map below shows their location in connection with each other:

[3]      The property owned by the Bolinas Trust (the Dooley property) is outlined in pink.  There is a residence and a guest house on the property.  It was purchased by the Bolinas Trust in 2003.   Dr Dooley and his family, who are from the United

States, live there for part of the year, and in Florida for the rest of the year. The guest house is rented out from time to time.  Dr Dooley has plans to construct a studio (an office, artist studio, entertainment and fitness facility) on the property and has obtained consent from the Tasman District Council to do so.

[4]      The property outlined in green is owned by Dominique de Borrekens (the de Borrekens property).1   There is a residence on the property.  Ms de Borrekens lives there with her partner.

[5]      The relevant boundaries of properties owned by companies associated with Mr Sturgess are outlined in yellow (the Sturgess properties).  The Sturgess properties which are adjacent to State Highway 60 (SH 60) are owned by SCL.   They were purchased in 2009 and are used for farming purposes.  There is no residence on these properties.  The Sturgess property between the Dooley and de Borrekens properties is owned by Lone Star Farms Limited (a company controlled by Mr Sturgess).   It was purchased in 1995.…