In September 2014, the council issues rates recovery proceedings against her and took steps to enforce the judgement.
A written decision by the Supreme Court said Castle's broad position seemed to be that her method of acquiring the properties meant they were no longer liable for rates and that she relied on the long-repealed provision of The Sale for Non-payment of Rates Act 1862.
In his Judgement, Justice Woolford said the governing statute was now the Local Government (Rating) Act 2002 and, under that Act, Castle was liable for rates on the property.
An application made by Castle to the Court of Appeal against Justice Woolford's judgement was abandoned after she failed to provide security for costs.
Her application for leave to appeal directly to the Supreme Court was dismissed after it was determined there were no exceptional circumstances that warranted the granting of leave.
Castle was also ordered to pay the Whakatāne District Council costs of $2500.