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A dispute over a proposed subdivision near Wanaka involving an Irish billionaire and one of New Zealand's richest men went to the Supreme Court and the billionaire lost.
The court yesterday dismissed Eamon Cleary's property company leave to appeal a Court of Appeal decision upholding a covenant restricting
the subdivision of prime land on the bank of the Clutha river.
Big River Paradise, associated with NBR Rich Lister Cleary, wanted to create 52 leasehold properties on the north bank of the river.
But fellow Rich Lister and 1980s high-flyer Robin Congreve, whose family trust owns land on the south bank, was able to enforce the covenant restricting subdivision to no more than three properties with one house on each.
Big Paradise applied to the Supreme Court after the Court of Appeal dismissed an appeal and upheld the High Court's decision that the proposed subdivision would breach the covenant.
Justices Andrew Tipping, John McGrath and William Wilson said Cleary's case as applicant had "failed in the courts below" and was also rejected by the Supreme Court.
The applicant's approach would defeat the obvious purpose of the covenant to protect the respondents' land and the covenant was written before the definition of subdivision that the applicant was using, the court found.
"Even if the applicant's position were seriously arguable, it would not raise any matter of general or public importance, or any matter of general commercial significance."
The court refused the application for appeal and ordered the applicant to pay the respondents $2500.
Congreve was listed as a respondent because of his role as trustee of the family trust.
He was one of the highest profile businessmen of the pre-crash 1980s scene. He was a partner at law firm Russell McVeagh specialising in taxation and business law before moving on to become principal of Oceania & Eastern Group, a New Zealand private equity group, as well as director of Tru-Test and chairman of Neuren Pharmaceuticals.
The 2006 NBR Rich List estimated his assets at $75 million.
Originally from Ireland, Cleary was once described as New Zealand's richest farmer, whose property empire was last year estimated to be worth $2 billion.
He is well known for property developments around Queenstown and was once accused of deliberately neglecting historic cottages in Arrowtown, subsequently bought by the Queenstown Lakes District Council for $1.9 million.
- NZPA