The co-owners, who bought the land as the Mana Aroha Co-Owners Association, were tenants in common with shares in the whole property.
Some have built dwellings, some of those unauthorised, on their allocated plots but the 60 hectares was never subdivided.
They all agreed the situation was not sustainable but could not agree on the solution, Justice Palmer said in a lengthy judgement that did not reflect on the nature of disputes as much as try to fairly draw up new lots.
"I do not consider it would be sustainable to divide the property in such a way that those involved in the dysfunctional relationships identified [would] continue to own land in common with each other," he said.
He stressed the difficulty of subdividing fairly and within Whangarei District planning requirements, so those who wanted to sell could, but those who wanted to stay had to buy those pieces.
Planning requirements mean subdivision could not be into blocks under 20 hectares.
"The law cannot fix bad relationships.
"But the relative certainty of property rights that comes with division will remove potential flashpoints that are inherent in co-ownership," Justice Palmer said.
He ordered the shares of the first and second plaintiffs (Victoria del la Varis-Woodcock and Janette Ajani) be bought by the remaining owners.
The proposal was an interim one, depending on planning consents and other preparatory steps, he said.
The subdivision costs would be borne by the new proposed owners.
The back block would be owned by the fifth and sixth plaintiffs, Gayhe Martin and Lief Thomaes; the middle block by the third plaintiff, Keven Scheurich and D.G. Trust; the front block by the three defendants, Julia Alabaster, Harold Van Blommestein and Kathleen Lee.
Subdivision and access costs would be borne by the new co-owners in proportion to their shares, and the outstanding rates paid immediately by all existing co-owners.
"All litigants have contributed to the current dysfunction in one way or another. There is no doubt the court's intervention was required.
''Moreover all litigants benefit from the orders obtained.
"I consider the costs of this proceeding should lie where they have fallen."