Friday, March 29, 2024

Court to sort out Mt Cook ownership

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The stalled sale of the historic Mount Cook Station is heading to the High Court.
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Responding to the legal challenge that stopped the sale of the station amid claims it was not sold legitimately, the trustees of the Burnett Mount Cook Station Charitable Trust applied for the High Court to resolve the issue.

The 2600-hectare Mackenzie Country high country farm was sold in March by tender to local couple Alana and Clint Miles.

But the couple were denied possession of the property, scheduled for April 29, when claims surfaced indicating the sale had not been legitimately executed and a legal investigation was opened.

The key to the challenge was the non-validity of the trustees who had sold the station and whether the station should have been sold into private ownership when the trust beneficiaries were named as the “general public of New Zealand”.

Given the sale’s legal challenge the trustees proceeded with an application to Attorney-General Chris Finlayson for approval to vary the terms of the trust deed.

His response said if the station was sold into private ownership then the public would not be able to enjoy it as the late Donald Burnett and his sister and station co-owner Catriona Baker intended.

“In circumstances where the applicants were not validly appointed trustees and given retention of the trust properties is central to the trust’s objects, entry into the sale agreement is likely a breach of trust.

“Entry into the sale agreement was an invalid exercise of the power of sale in the trust deed,” his report said.

Finlayson said the applicants sought to alter the objects in a manner that would remove the centrality of the trust’s continued ownership of the properties, being Mount Cook Station and associated Cox’s Downs.

The Burnett Mt Cook Station Charitable Trust was set up in 2009 to keep the station operational for the benefit of the people of NZ.

The legal challenge was initiated by two of the trustees of Baker’s estate, Janine and Linda Sundberg, against the trustees and estate of the late Donald Burnett, being Joseph Butterfield, Derek Taylor and Lindsay Hilson.

Solicitor Harry Shaw of Wynn Williams, acting for the trustees, said Finlayson’s “non-binding report” had been considered.

“We consider it is flawed in many respects.

“Our clients will accordingly continue with the court application, taking on board the comments from the Attorney to the extent they apply and otherwise working to achieve a solution which best enables the objects of the trust to be fulfilled going forward,” Shaw said.

A trustee was needed to take the matter to court so it had been agreed between the feuding parties to appoint an interim trustee.

Long-time friend of Donald Burnett, Ashburton farmer Michael Askin was appointed as interim trustee with limited powers for the purpose of the court application.

Responding to claims the trustees had been running the property at a loss and without fresh capital was not a viable stock operation, Shaw said the land had been subject to a life interest and a long-term lease arrangement until late 2015.

“Hence the restriction on acting sooner,” he said.

Finlayson’s report said the Sundbergs had identified a number of other options including a long-term lease, partial sale of some of the property or gifting the property to the Department of Conservation (DOC) or the Queen Elizabeth National Trust – which might better serve the purpose of securing the future protection of the property.

DOC had turned down a chance to buy before the property went on the open market.

“Entry into the sale agreement was an invalid exercise of the power of sale in the trust deed.”

Chris Finlayson

Attorney General

It ruled out buying the land because conversation values were protected by covenants.

Outdoor enthusiasts, including the Federation of Mountain Clubs and NZ Deerstalkers Association, had lobbied government to buy the station, claiming access to Mt Cook National Park was limited because of private land ownership.

Meanwhile, it was understood the Miles, as the “proposed purchasers”, were leasing the station.

The trustees’ application for approval to vary the deed was set for a court hearing in Christchurch on September 15 and 16.

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