Council's bill passes $1.1m mark

Fighting the Waitara leaseholders through the courts has already cost New Plymouth ratepayers more than $1.1 million – all of it going to Wellington law firm Simpson Grierson.

And with the prospect of further court action on the horizon that figure could rise higher still.

The deadline for leaseholders to sign up to the latest multi-party suit being considered passed on Wednesday.

The suit seeks compensation for financial loss suffered by leaseholders as a result of the New Plymouth District Council's statements about the future of the leases.

Karen Towt, a spokeswoman for the leaseholders' legal team, was unable to confirm a minimum of 120 people had signed up this week because the legal team had yet to meet and tally up the figures.

An announcement is expected early next week.

Meanwhile, figures supplied by the council show previous court battles and their associated hearings and appeals had cost the council more than $1,112,753.97.

Additional money spent has been recovered through court awarded costs of $65,593.74 and insurance payments.

A five-year battle has raged since council's 2004 decision to sell Waitara leasehold land to the Crown, which could then be used in Treaty of Waitangi settlements with Te Atiawa instead of allowing leaseholders to freehold their properties.

The council eventually won the first round in 2007 when the Court of Appeal overturned a High Court ruling in favour of the Waitara Leaseholders' Association that the council's decision was unlawful and a breach of trust. That cost the council $789,826.99.

The court awarded costs but council never tried to have an amount set or recover any money because by the time the costs were awarded, the Waitara Leaseholders' Association was liquidated and ceased to exist as a legal body.

In 2006, 155 individual claims were made against the council but six test cases were dismissed by the High Court in a summary judgment last year. That cost the council $388,520.72. The court awarded council costs of $65,593.74, and this amount was paid.

Simpson Grierson partner Jonathan Salter said the costs reflected the complex issues involved.

It was also partly a result of the way the leaseholders had brought their arguments and changed them as they went through the court process, he said.

Another factor was the complicated circumstances for different pieces of land contested, the different laws involved and therefore the different procedural steps required, he said.

Chief executive Barbara McKerrow said the council had an obligation to defend its democratically made decision and the courts had resoundingly confirmed the decision was lawful.

"The decision in 2004 was made after an extensive period of consultation in which the leaseholders were involved," she said.

"The costs incurred by the council are the result of a number of leaseholders refusing to accept the outcome of this due process.

- © Fairfax NZ News