The Auckland and Queenstown airport companies are seeking a security of costs order from the High Court against the community group challenging the share sales deal, court documents reveal.
Queenstown Airport Corporation (QAC) and Auckland International Airport Ltd (AIAL) claim the Queenstown Community Strategic Assets Group Trustee Ltd (QCSAGT) would be unable to pay costs if their High Court challenge is unsuccessful.
The two airport companies are asking that court proceedings be halted until security of costs, of not less than $45,000, is given.
The Queenstown Lakes District Council (QLDC), which is also a defendant in the judicial review case due to be heard next year, does not appear to be a party to the costs claim, according to a search of the documents yesterday by this newspaper.
Documents show the community group was set up as a company on August 13 to act as a trustee for an incorporated society, to be formed for the purpose of opposing the sale of shares in Queenstown airport.
The QAC and AIAL claim the plaintiff is a shell company with one shareholder and one director (John Martin), one share and does not appear to have any assets.
But subsequent court documents show the Queenstown Community Strategic Assets Group Inc was incorporated as a society on September 27.
The members are listed as Mr Martin, QCSAGT, Skyline Enterprises, Monaghan Holdings, Jacks Point Land Holdings and Hogans Gully Farming Ltd.
Initial committee members are Mr Martin, Ken Matthews and Graham Smolenski.
There is power to add two more committee members who are likely to be Michael Davies and John Darby.
The QCSAGT opposes the application for security of costs, saying it is acting in the public interest, the newly incorporated society will substitute for the plaintiff and that Air NZ is taking the same issue to court and is in a position to pay any costs awarded.
The newly incorporated society was not a party to the judicial review before the High Court, but would substitute for the plaintiff in these proceedings, Mr Martin said.
In an affidavit, Charles Spillane, general manager of corporate affairs for Auckland International Airport, says while he has serious concerns about the trustee company's ability to pay, he believes Mr Martin and members of the asset group have "substantial financial means" and would be in a position to assist the plaintiff in providing security.
This newspaper's legal adviser says High Court litigation of this type, with multiple defendants, is very expensive.
