Bella Vista developer Danny Cancian fights bankruptcy challenge over $1m debt

Former Bella Vista Homes director Danny Cancian is fighting a challenge to declare him bankrupt. Photo / NZME

The man behind Tauranga's failed Bella Vista development is fighting a High Court challenge to declare him bankrupt, promising the court he has a plan to pay back a $1 million debt to a building materials supplier.

Danny Cancian, former director of the now-liquidated Bella Vista Homes company, shed tears as he appeared via audio-visual link in the High Court at Tauranga yesterday.

The 21-home Bella Vista development in The Lakes was evacuated by Tauranga City Council in 2018 over claims of construction deficiencies. The saga has since sparked multiple court cases.

In one, Cancian was taken to court by Carter Holt Harvey, the owner of retail timber giant Carters. Cancian owes the company $1.078m racked up during the construction of the development.

When his company Bella Vista Homes was liquidated, a number of creditors stepped forward, including Carters, which was owed one of the largest sums.

Carters took Cancian to court in 2017, suing him for the unpaid debt. The company argued Cancian was personally liable for his former business' bill because he signed a personal guarantee for a line of trade credit.

Cancian, however, argued Carters led him to believe his liability would be limited to $50,000 and that the credit limit was raised without his knowledge.

The case dragged on for years, with the High Court ruling in 2020 that the money should be paid - plus interest - and Justice Edwin Wylie saying he found aspects of evidence Cancian had given in court to be "self-serving" and "uncorroborated".

That ruling came after a two-day hearing in which Cancian represented himself.

Cancian appealed the decision of the court in 2021, again losing.

However, the former developer has still not settled the debt.

That led Carters to seek an order for bankruptcy adjudication - in essence, a court order declaring Cancian bankrupt.

When the Bella Vista Homes company was liquidated in 2017, it abandoned multiple unfinished properties and owed millions in debt. Photo / NZME

That would allow Cancian's assets - including properties, vehicles, or other valuables - to be sold to pay his creditors back.

The case was heard on Thursday in the High Court at Tauranga in front of Associate Justice Rachel Sussock.

Acting for Carter Holt Harvey, lawyer Philip Morris told the court the case meets the threshold for the court to deem Cancian bankrupt.

It was clear he did not have the ability to pay what he owes, and had previously admitted that in court.

But Cancian, who represented himself, said he intended to pay the debt one day, albeit with money he isn't guaranteed to receive.

He told the court he planned on filing a defamation suit against the Tauranga City Council, which he was convinced would be successful.

The hypothetical damages or settlement funds would then be used to repay debt, Cancian said.

If the court was to bankrupt him now, it would mean that he wouldn't have the means to launch the defamation challenge down the line, he said.

Cancian said in court that as a layperson, he was "not very versed" in how the bankruptcy adjudication process works, but told the Judge he was a good person and that "people don't actually know me".

He spoke of the pressure of the multiple legal battles he had fought as a result of the development, and how he believed his reputation had been "destroyed" by media coverage of the saga.

At one point, he paused speaking for a few moments and wiped tears from his eyes with tissues.

"I know everyone thinks I'm this tough guy you know. I just want things to be fair, I want my day in court as well," Cancian said.

Associate Justice Sussock reserved her decision, saying she wished to review previous judgments and submissions in more detail before reaching a conclusion.

What is bankruptcy

Bankruptcy is a way to clear a person's debts if there's no way they can pay back the people or organisations they owe money.

It's not an easy way out — entering bankruptcy means the Official Assignee has control over everything they own (except things like clothes and household appliances), and can sell them to pay off the debts.

A person can become bankrupt if they owe more than $1,000, but it's best for people who owe more than $50,000.

If a person owes less than $50,000 they should consider a Debt Repayment Order or a No Asset Procedure instead.

Source: New Zealand Insolvency and Trustee Service