Stuff
The Koko Ridge subdivision in Queenstown has been subject to court proceedings after businessman Conor English argued he was cut out of a deal to buy the property in 2018.
Conor English was cut out of a deal to develop a Queenstown subdivision. Now his claim to part of an estimated $25 million profit has been denied.
The dispute began when English – brother of former prime minister Bill English – believed he was cut out of a deal to buy and develop the 10-hectare Ladies Mile site in 2018.
It was instead purchased by Queenstown businessman Wayne Foley, director of construction and project development company Trinity Development, who went onto to subdivide it into 26 lots.
Seven of those sections are currently advertised for sale for prices from $1.1m to $1.4m.
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The men settled the case in 2019 with an agreement that English would be paid $200,000 and given a $300,000 credit on the purchase of a lot created on the land.
The development company, now known as Koko Ridge Ltd, was required to give English the first option to buy any of the lots offered for sale seven days prior to them being offered to the public.
The company also agreed to “propose and support” that the main street in the development would be named “Tom Coughlan Avenue”.
Coughlan was a farmer and Canterbury rugby player who played a match for the All Blacks in 1958.
He was also the father of English’s wife, Jo Coughlan, a former Wellington mayoral candidate and director of Silvereye Communications.
The payment of $200,000 was made, and the court proceeding was discontinued.
However, English brought a new proceeding in 2022 claiming he was not offered lots before the public and that Koko Ridge had not taken the steps to complete the road naming as agreed.
He also said the company did not notify him that the application to name the road had gone to the Queenstown Lakes District Council.
It is understood the council did not approve the name as it did not meet its naming criteria. The road is now named Kahiwi Drive.
Foley and Koko Ridge Ltd sought to have English’s claims struck out.
In a decision released in February, High Court Associate Judge Dale Lester outlined English’s claim that when he agreed to the settlement he lost the opportunity to profit from the development.
He estimated profit would be around $24.5m, and he sought losses or damages for a portion of $12.25m.
However, he did not seek to cancel the settlement agreement.
English’s lawyer argued that he would not have entered the settlement agreement if he had known the defendants would breach it, and also that Foley and Koko Ridge benefitted from him dropping the case.
He also said that the defendants were aware of English’s poor health at the time the contract was entered into.
English, a director at Silvereye Communications and former farming industry heavyweight, was being treated for prostate cancer at the time.
Foley and Koko Ridge said English had voluntarily given up the ability to pursue damages by signing the agreement.
The company said he was still entitled to what he bargained for with the discounted lot.
Associate Judge Lester said English’s claim for damages for the alleged breaches of the settlement agreement was untenable.
English gave up the right to sue for damages by signing the settlement agreement.
English retained the $200,000 cash payment and was still able to take up the option to purchase a lot with the $300,000 credit, the judge said.
Part of the claim was struck out, while the judge requested amended claims were made in regard to the street naming and allegations of breach of contract.
They were to be filed with the court by the end of February. It is understood that no further claims have been made.
English declined to comment.