Wilding v Te Mania Livestock Ltd

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2014-409-899 [2017] NZHC 717

BETWEEN

TIMOTHY WILDING

First Plaintiff

TE MANIA PROPERTIES LIMITED Second Plaintiff

AND

TE MANIA LIVESTOCK LIMITED First Defendant

W. H.  HOLDINGS LIMITED Second Defendant

JOHN HARRINGTON Third Defendant

HOONG BEE TECK Fourth Defendant

WONG CHUN WIN Fifth Defendant

HONG WEIGUO Sixth Defendant

Hearing:

21, 22, 23, 24, 27, 28, 29, 30 June 2016, 1, 4, 6, 7, 8 July 2016,

7, 8, 9, 10, 14, 15, 16, 17, 18, 21, 22, 23, 24, 25, 28, 29, 30

November 2016, 1, 2 December 2016 to March 2017 (further memoranda, evidence and submissions)

Appearances:

P J Dale and V E Fletcher for First and Second Plaintiffs
T J Mackenzie for First Defendant
B M Russell and R J Hopkins for Second, Fourth and Fifth
Defendants
I G Hunt and C Light for Third Defendant

Reasons:

12 April 2017

NICHOLAS DAVIDSON J - REASONS FOR INTERIM JUDGMENT DELIVERED ON 5 APRIL 2017

WILDING & ANR v TE MANIA LIVESTOCK LTD & ORS [2017] NZHC 717 [12 April 2017]

INDEX

A.INTRODUCTION.............................................................................. [1] The Te Mania Aberdeen Angus Stud .................................................... [2] Te Mania Livestock Ltd (TML)............................................................. [8] TML Shareholding................................................................................ [11] Land leased by TML............................................................................. [14] Te Mania Properties Limited (TMPL) .................................................. [15] Development of relationships ............................................................... [18] Why has TML come to this pass? ......................................................... [23]

2012...................................................................................................... [27]
2013...................................................................................................... [30]

2014...................................................................................................... [43] The entry of the lawyers ....................................................................... [64] The condition of the young bulls .......................................................... [67] Mediation ............................................................................................. [69] Terra Firma .......................................................................................... [78] DOC land ............................................................................................. [79] Mr Harrington’s employment claim .................................................... [80] Derivative proceedings ....................................................................... [81] Application to remove Mr Harrington and Ms Adams as directors..... [83] Attempt by Mr Harrington to liquidate TML ....................................... [84] Missing hay ......................................................................................... [85] Hacking of emails................................................................................. [86] Heartland Bank ................................................................................... [90] The valuation exercise ......................................................................... [93] The Oversight Committee .................................................................... [99]

A further perspective ............................................................................ [102] Wadi...................................................................................................... [104] Mr Haugh and Mr Hazlett ................................................................... [105]

B.       THE PLEADINGS ............................................................................ [108] Mr Hong – Sixth Defendant ................................................................ [108] Mr Wilding’s amended pleading........................................................... [109] Mr Wilding’s first cause of action ....................................................... [111] The fate of the (abandoned) first cause of action................................. [117] Mr Wilding’s second cause of action ................................................... [126] Mr Wilding’s further (the fifth) cause of action ................................... [129] Te Mania Properties Ltd - third and fourth causes of  action .............. [130] The First Defendant - Te Mania Livestock Ltd ................................... [132] Third Defendant – Mr Harrington ....................................................... [135] Counterclaims ...................................................................................... [137] Second, Fourth and Fifth Defendants – WHHL, Bee Teck and

Mr Wong .............................................................................................. [139] The track of these Reasons for Interim Judgment ............................... [140] The Shareholders’ Agreement............................................................... [142] Section 174 Companies Act 1993......................................................... [143] Liquidation under s 174(2)(g) ............................................................. [150]

C.ANTECEDENT LITIGATION (BEFORE TRIAL) ....................... [151] DOC grazing licence............................................................................ [152] Derivative proceedings and application for removal of directors ....... [153] Liquidation proceedings against TML ................................................ [159]

D.ISSUES ................................................................................................ [168] (1)  The conduct of the parties ........................................................... [168] The TML accounts ........................................................................ [171] Underlying pressures and resentment ........................................... [177] Personalities ................................................................................. [179]