Daily Archives: July 29, 2016

Delta #EpicFail —Epic Fraud #9 : The Long & Winding Road…. Leads Back to Delta’s Door

Updated post – emails added below
Fri, 29 Jul 2016 at 2:20 p.m.

Received from Christchurch Driver [CD]
Fri, 29 Jul 2016 at 2:01 a.m.

Dear Readers

It has been a week of action around the ill-fated Noble Subdivision. Fill the teapot and hang on to your hat…er, tea cosy.

The week started with what appeared to be a lucky break for Delta. Judge Osborne, inexplicably, and against the predictions of your correspondent, found in favour of Delta. (Actually Gold Band, but we all now know of course that Delta have a very special relationship with Gold Band that involves whips and chains of a sort, and even legal blindfolds —Delta most definitely wear the security sharing trousers). Judge Osborne will not allow a stay on the mortgagee sale, which allows the property to be sold ahead of the Court of Appeal case where the landowners will set out their case that Delta have engaged in constructive fraud.

Your correspondent will return to the many, many puzzling aspects of the decision in a future post, but first the breaking news :

Any comfort Mr Smillie, Mr Cameron, and the assorted Delta hangers on directors and executives may have felt will be very short lived as it turns out that this defeat is actually a Good Thing as far as the plaintiffs are concerned. It means that instead of pursuing a small finance company (with its strings being pulled by Delta), Delta and the DCC are now the primary target. Further, now that the losses to the landowners are crystallised if the sale proceeds, which is the avowed intention of Gold Band, the claims may well be much bigger.

The “legal” explanation is as follows…. It’s musical chairs – the last man/entity standing at the end of the day cops the lot.

A similar example that has cost councils large sums, including our DCC, are claims for leaky buildings : The vast majority of claims are against the local authorities who merely inspected the work, they did not build it or design it – but when the developer doesn’t exist, the architect and builders have “re-structured” to prevent claims, and the painter, plasterer and roofer have no money, then councils get landed with the claims. The QLDC have a never ending series of these sorts of claims and they mostly involve millions. (They have at least two on at present).

Tonight, all DCC Councillors received an email from the landowners explaining that yes, the DCC and Delta are going to be taken to Court for the constructive fraud, and giving several examples of the constructive fraud. They then set out the small matter of the approximate $14-17million loss that Delta have already advised the Council they expect to lose – and why this doesn’t have to be the case. There is pain from both sides of this financial double-edged sword – the expected loss, and the court action. However, far from being Noble-like aggressive litigants, the landowners have proposed that the DCC works with them to maximise their return.

The email is reproduced below.

The logic appears compelling – but what Councillors, other than Vandervis and Calvert, have the character and integrity to get to the bottom of the matter, and acknowledge that there have been some illegal acts committed at Noble by Delta and its agents. Perhaps Cr Peat could do something useful or even visible as his parting gift to the city, because his self-serving valedictory address in the ODT recently was the first time Dunedin Ratepayers had actually heard of him.

What Councillors have the intestinal fortitude to look the sorry band of Delta and DCHL Directors in the eye and say to them— “If any of the allegations in this email are true then you have no business or future with ANY DCC or associated entity and we expect your resignation in the morning ?”  

If your correspondent sounds disgruntled, he is : It is election season, and there are no votes to be had in this matter. Vague platitudes (the preferred modus operandi of many Councillors) are also of no help. Are our Councillors going to shrug off an attack of the turnips and do something ?

What price and what probability, is there for integrity here, readers ?

[click to enlarge]

Email from Colin Stokes [plaintiff] to DCC Thu, 28 July 2016 at 7.59 pm - copied

Attachment: 2016 07 28 s102 Stokes Smith Gold Band_Delta_DCC

****

Additional emails received today:

Emails from Colin Stokes [plaintiff] to DCC and others Fri, 29 July 2016 at 9.17 am - copied

Attachment: Fourth amended statement of claim joining GB and Delta

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

22 Comments

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