Tag Archives: Costs

ODT on ERA hearing of claim and counter-claim | Lund South release

Updated post 6.10.14 at 7:55 p.m.

The long-running employment dispute between the owner of Dunedin construction company Lund South and its former Dunedin manager David Low returns to court in February 2015.

Last week the local newspaper offered stray comment which attracted a strong press response from Lund South. There is further news coverage today.

The full press release features below.

How it began:

### ODT Online Wed, 24 Sep 2014
Former Lund manager wins in court
By Simon Hartley
The former Dunedin manager of construction company Lund South has won the latest in a string of long-running court battles over non-payment of bonuses; covering two years of his almost nine-year employment with the company. […] At stake was understood to be around $500,000 in bonuses and legal costs of at least tens of thousands of dollars.
Read more

The news item is notable for a lack of balance.

█ Lawyers advise this is the extent of comments that can be made:

Lund South logoLund South - Press release 25.9.14

[ends]

What appears today:

ODT Online Mon, 29 Sep 2014
Bonus dispute set to continue
By Simon Hartley
[…] In response to an ODT article last week about an Employment Court finding this month, [Russell] Lund said in a statement that despite earlier court findings the “substantive issues” of the case were yet to be heard in court. A substantive hearing would be held in February, when the Employment Relations Authority would consider Mr Low’s claim and Lund South’s “substantial counterclaim” against him, he said.
Read more

It is extraordinary, in the context, Mr Low concedes at hearing that ‘during the disputed period he was not functioning at his full potential’ and confirms he has been ‘a disloyal employee to Lund South and commented negatively about the business to others inside and outside the business’.

Also at hearing, Mr Low says Mr Lund is ‘entitled to draw unfavourable comparisons’ between his performance and that of Lund South’s then Queenstown manager.

Other employees at Lund South may care to comment.

We can only wonder…..
It’s interesting that the judge has sealed evidence from the hearing. Assume from this the likelihood of forthright revelations and exposure of Mr Low’s situation in court next year. To that encounter ODT may deign to send an experienced court reporter able to grasp finer points.

David Low’s own advisers have commented that the majority of Mr Low’s claim is destined to fail and have urged mediation and compromise.

Lund South Ltd v Low [2014] NZEmpC 173 [Judgment of Judge B A Corkill, 18 September 2014] (PDF, 152KB)

CONTRACT – Defendant informed of proposed changes to role in September 2008 – Proposed changes purportedly included cessation of defendant’s bonus entitlements – Changes not properly formalised in individual employment agreement until September 2010 – Defendant resigned with effect from June 2012 – Preliminary question as to whether defendant’s bonus entitlement ceased from October 2008 or continued until September 2010 – No agreement that defendant had agreed to stand down from role in late 2008 – Bonus continued until September 2010 when defendant was formally offered new position.

Posted by Elizabeth Kerr

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Stadium: $266 million, more or less?

Most of the information was already in the public domain, but it was the first time the costs had been collated and presented in one list. Council financial planner Carolyn Howard spent three months, between other projects, collating the material. —ODT

### ODT Online Sat, 7 Sep 2013
New figures raise stadium costs
By Chris Morris
New financial figures have pumped up the price of Dunedin’s Forsyth Barr Stadium to as high as $266 million. The Dunedin City Council hopes the disclosure will help draw a line under the project and put an end to years of acrimony and finger-pointing. The list released yesterday detailed $42 million in spending on projects considered fully or partially stadium-related, from the State Highway 88 realignment to the bail-out of the Otago Rugby Football Union. However, council chief executive Paul Orders told the Otago Daily Times the public would have to decide what was fair to include in the final stadium bill.
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Stadium-related extras (via ODT)
External advice $2.1m
DVML setup costs $3.4m
Carisbrook deal $3.4m
ORFU loan (nominal cost) $700,000
State Highway 88 $27.2m*
Surplus land $1.7m
Local roads (lost assets) $3.5m
TOTAL: $42m

PWC’s stadium cost: $224.4m

If all extras included: $266.4m

*NZTA ⅔ subsidy

Posted by Elizabeth Kerr

*Image: populous.com – Otago stadium (re-imaged by whatifdunedin)

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41 Wharf Street —DCC ends debacle

Fear not! More costly settlement is due.
There’s the perplexing State Highway 88 Realignment Project for Council to conclude with affected parties damaged by foul-play planning activity, and the new round of ‘proper’ designation! This will make Mr Barnett’s cheque seem like a 4% discount fuel voucher ripped from a mile-long supermarket receipt for your best ever, most hair-raising Christmas shop!

### ODT Online Tue, 27 Aug 2013
Apology, payout to developer
By Debbie Porteous
Dunedin developer Tim Barnett has received a public apology and a $200,000 payout following a lengthy battle to recover his costs after the Dunedin City Council restricted his ability to develop his harbourside property. The property, at 41 Wharf St, has since been sold to developers who are hoping to build a 27-storey hotel on it.

41 Wharf Street, Dunedin 1 (DCC WebMap)41 Wharf Street, Dunedin [DCC WebMap]

DCC chief executive Paul Orders yesterday apologised to Mr Barnett, of Arthur Barnett Properties, for the inconvenience caused by the council’s decision-making since 2008. The formal apology, issued by Mr Orders yesterday, read:

”Council apologises for the inconvenience, and also thanks Mr Barnett for working with council in good faith as the parties explored options over some years. Mr Barnett has a long history of commitment to the city of Dunedin. Council trusts that the good working relationship that has developed between Mr Barnett and the council over the years will continue.”

The $200,000 covers Mr Barnett’s out-of-pocket costs (just under $118,000), the interest on his costs ($41,000) and a contribution to his legal fees during his lengthy attempt to first remove the restrictions on developing the site and then recover from the council the cost of those restrictions.
Read more

For more on 41 Wharf Street, enter *hotel* in the search box at right.

Posted by Elizabeth Kerr

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Farry’s CST overspends budget by 46%

They spent $5.4 million on their own activities, as opposed to a budget of $3.7 million.

Comment received from Rob Hamlin
Submitted on 2012/05/12 at 3:47 pm

The critical part of the PWC report is given below. A deeply buried nugget on page 28 (of 43). As PWC note, the overruns excluding interest amounted to 206.4 – 198 = 8.4 million dollars – an overrun of around 4%. Which as PWC point out, is not that bad by the standards of such things.

However, 20% of this total is accounted for by budget overspend related to the Carisbrook Stadium Trust’s own internal activities. They spent $5.4 million on their own activities, as opposed to a budget of $3.7 million, an overspend of 46% of budget – as opposed to the rest of the project, which overspent by 3% once the CST’s contribution to the overall overspend is removed.

In addition, the reasons for the overspend in the other areas is covered in some detail in the other sections of the report and are fairly easy to understand (if not necessarily to agree with). The CST’s blowout contribution is different, with no real reason for this overspend appearing in the passage below. They were given a budget – they blew it – Why? PWC is silent – read on…

Posted by Elizabeth Kerr

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D Scene – STS ordered to pay DCC !!

### D Scene 16-9-09
STS ordered to pay $9k (page 7)
Stop The Stadium has been ordered to pay Dunedin City Council $9740 by the High Court. The decision, released yesterday, dismissed STS’s application for costs and upheld costs sought by DCC.
{continues}

Register to read D Scene online at http://fairfaxmedia.newspaperdirect.com/

Undie issues (page 3)
By Dave Wood, acting editor
The core issue behind the Undie 500 mayhem will not be solved in the next year; probably not in the next decade. Binge drinking is too ingrained in the New Zealand culture.
{continues}

Undie 500 students await fate (page 5)
By Michelle Sutton
Students directly involved in the Undie 500 mayhem face a nervous wait as Otago University determines what penalties will apply.
{continues}

Who exactly was arrested, find out here…
First students* appear in court (page 5)
By Wilma McCorkindale
The first court appearances in relation to the weekend’s Undie 500 mayhem were made yesterday with three people appearing in the Dunedin District Court.
{continues}
*These people are not described as students in other media…

Time to play the Blame Game again (page 5)
Student scene with Morgan Tait
It is this time each year, in the aftermath of the infamous Undie 500 visit to Dunedin, that interested parties engage in many rounds of the Blame Game.
{continues}

Some estimates…
‘Biggest cost is city’s reputation’ (page 6)
By Michelle Sutton
The cost of Dunedin’s Castle St carnage cannot be accurately measured. The physical clean up has already cost thousands of dollars, but city leaders expect it to escalate as the city’s reputation suffers the biggest loss.
{continues}

****

A week of it (page 10)
“I know they will pull out all the stops to get the stadium finished on time. It may be that the concrete’s still drying as the players run out.”
Find out who said this…

Talk: Dunedin on Dunedin (page 10)
Your say
Council planning by Lyndon Weggery, Kew
Mega-ward by Gavin MacDonald, St Kilda
Delta questions by Calvin Oaten, Pine Hill

****

STS is NOT a political party. Would you vote for these people?
‘Our votes the key to everything’ (page 11)
The Stop The Stadium group is to consider a change of direction to focus on replacing Dunedin City Council and Otago Regional Council councillors at next year’s elections. Newly elected STS president Dave Witherow says the last three years have been an all-time low for the city.
{continues}

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On the matter of costs

Remember the gunfight at the OK Corral in Tombstone…

### ODT Online Wed, 2 Sep 2009
Stadium group seeks costs
By David Loughrey

Stop the Stadium’s lawyers are applying for $17,513 court costs from the Dunedin City Council following the organisation’s High Court challenge to the council’s funding of the Forsyth Barr Stadium. The council, in turn, is applying for $11,000 from Stop the Stadium, and the organisation’s future hangs on the result.
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…symbolising the struggle between law and order and open banditry and rustling in frontier towns of the Old West?

****

Local resident Syd Adie thinks STS should have joined the Dunedin Householders and Ratepayers Association to stop the stadium project. He calls for people concerned about the city’s direction to take in a wider range of issues, and to blame a wider group of organisations than just the Dunedin City Council for the Forsyth Barr Stadium.
ODT Link

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Mayor Chin to publicise STS cost to Council

### ODT Online Tue, 25 Aug 2009
Group to face hefty legal bill
By David Loughrey

Stop the Stadium faces paying up to $17,000 in court costs, after its challenge to the Dunedin City Council’s funding of the Forsyth Barr Stadium was yesterday dismissed.
Read more

****

### ODT Online Tue, 25 Aug 2009
$13m stadium funding ‘error’ revealed
By David Loughrey

Stop the Stadium may have lost its Court of Appeal case, but the group says it has exposed incorrect claims about stadium funding by the Dunedin City Council.
Read more

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