Chris Meehan-linked company Waterfall Park Developments brought the claim against James and Rebecca Hadley last year, claiming it suffered losses as a result of the couple’s "persistent and unreasonable" opposition to its plans for residential development on land the company owns between Lake Hayes and Arrowtown.
In his decision, publicly released this week, Justice Gerald Nation said the developer’s ulterior motive for the claim was to deter the Hadleys from participating in three other court proceedings in which they were involved.
It wanted to "impose on the Hadleys the burden and costs" of having to defend the claim.
Company counsel Mike Colson argued the Hadleys had consistently opposed the company’s development of part of its land on Ayrburn Farm by taking it to court over a row of trees it had planted, submissions to the council against its subdivision application, and opposing the company’s court appeals over the land’s zoning, the tree planting and the subdivision.
Those actions had been "persistent and unreasonable", costing the company the opportunity to start its development in June last year, Mr Colson said.
In an affidavit supporting the application, Mr Meehan said the Hadley’s conduct through those communications amounted to "extortion or blackmail", and their motive had been to "extract a commercial benefit" from the company.
However, Justice Nation struck out the two separate claims for damages, totalling $14.36m, and refused the evidence application.
The Hadleys' opposition was not "unreasonable and persistent", nor had they had failed to act in good faith during mediation and settlement negotiations.
The decision is the latest round in a protracted and complex legal dispute between the Hadleys and the company, which owns the historic Ayrburn Farm and neighbouring Waterfall Park properties.
The couple took the company to the Environment Court in 2020 over a 500m-long row of trees it had planted along a boundary of Ayrburn Farm.
They argued the trees would adversely effect the adjacent Queenstown Trail, their real purpose was to screen residential development the developer was planning, and were not a farming shelterbelt as the company claimed.
The court found the tree planting was unlawful, and in March, the High Court dismissed Mr Meehan’s appeal of the decision.
Mr Meehan has recently shelved plans for a retirement village on part of the Ayrburn land, and is now pursuing a rezoning of the site for lifestyle lots.
He is still seeking to develop a retirement village on the Waterfall Park land, having abandoned plans for an already-consented 380-room hotel and spa complex.
- Guy Williams, PIJF court reporter
