Legal action starts against council

The hierarchy at Horowhenua District Council is being accused of blindsiding elected officials over a legal dispute with a property developer.

Proceedings were filed in the Palmerston North High Court in September against the council by Srinagar Limited and its subsidiary Ashdale Levin Limited.

But councillor Sam Jennings said he found out about the legal action only when the developer provided him and other councillors with their own council’s response.

He wanted to know why councillors were being left in the dark and were not afforded a ‘‘no surprises’’ briefing.

The legal dispute is over who should pay for stormwater pipes used in a subdivision on Roslyn Rd in Levin.

The pipes installed were over three times the diameter of the size required for the subdivision, but allowed for future further development.

Court documents show Srinagar Ltd was seeking just under $370,000 from the council for the cost of the larger pipes.

It was also seeking confirmation that upsizing costs would be paid by the council for the remainder of the sub-development, where pipes still needed to be installed.

Otherwise, the developer would only install pipes suitable for their subdivision and not future expansion.

Jennings said he and other councillors had heard nothing about the proceedings until they were contacted by the developer at the start of October.

They still hadn’t been provided any information from the council, despite indications the dispute has been brewing for more than a year.

‘‘Really, bizarrely, they are not giving us any information and keeping governance and council out of the loop.’’

Jennings filed a motion to be tabled at the Finance, Audit and Risk Committee today, an action he hoped would trigger more information being disclosed.

However, the motion was declined due to not being in the scope of the meeting. He was intending to file it again to have the issue heard at an upcoming council meeting.

Roger Truebridge, a director of both the development companies, said he had been trying to resolve the issue with council staff for 18 months but nothing had come of it.

Truebridge said he informed councillors directly because he wanted to give them a chance to settle outside of court.

The companies were still in a position to take part in mediation to solve the issue, but the council had not been responsive to that, Truebridge said.

Council chief executive David Clapperton did not wish to comment on the dispute as it was before the courts, but he said councillors had been updated on the matter via an email on October 8.

It was also recommended that Jennings’ notice to have the litigation discussed be referred to a November council meeting.

Mayor Bernie Wanden said he had no comment as it was before the court and was an operational matter.

Srinagar Limited had a subdivision resource consent approved for Roslyn Rd in 2019.