Feuding Greymouth Petroleum owners back in court

Greymouth Petroleum CEO Mark Dunphy (left), and former chief operating officer John Sturgess, pictured here together in 2007.

Feuding shareholders of Greymouth Petroleum are due back in the High Court today to argue over damages as their long-running dispute nears an end.

Greymouth Petroleum's former chief operating officer and director John Sturgess fell out with board members and fellow shareholders Peter Masfen and Mark Dunphy in 2010.

In August 2011 Dunphy and Masfen launched High Court action against Sturgess which made "wide-ranging complaints" about his conduct.

Dunphy and Masfen sought orders that Sturgess' interests sell their minority stake in the Greymouth group and sought damages for the now-former director's alleged negligence.

After a seven-week trial Sturgess - and interests associated with him - were ordered to sell their shares at fair market value by Justice Murray Gilbert in 2013.

In his that decision, the judge said Sturgess had a "readiness to ascribe responsibility to others when things went wrong" and listed examples of this.

"These instances, and others like them, combined with Mr Sturgess' inadequate, evasive and sometimes misleading reporting, led to the destruction of trust that was essential to the working relationship between Mr Sturgess and the other two directors. This had become a major issue by the end of 2010. I consider that Mr Sturgess must take primary responsibility for this," Justice Gilbert said.

Sturgess and trustees linked to him challenged that decision but it was dismissed by the Court of Appeal. The Supreme Court refused to take the case last October.

The parties are now due back today in the High Court at Auckland before the original trial judge for an argument over damages in what one person associated with the case described as "tying up loose ends".

Dunphy, and interests he represents, hold 52 per cent of the company while Masfen - with his wife - owns 34 per cent.

Sturgess and interests associated with him own 14 per cent. Despite the order to sell, Sturgess and the associated interests are still listed as shareholders by the Companies Office.

Dunphy is Greymouth Petroleum's executive chairman, while Masfen is a non-executive director of the firm.

A former Olympic rower, Masfen is a prominent businessman who was worth $410 million last year, according to the National Business Review's Rich List. This same list put Dunphy's wealth at $255 million.