Court Orders Bankers to Pay $12.1 Million After Carbon Offset Dispute

A protracted legal dispute over a collapsed carbon offset partnership has resulted in a significant ruling by the High Court in Wellington. Bankers Will Leckie and Chris Morrison have been ordered to pay no less than $12.1 million to Ant and Wendy Beverley after being found guilty of breaching their duties as directors and partners in the Drylandcarbon management companies.

The partnership, which began in 2015, fell apart in 2019. The court found that Leckie and Morrison, who managed Drylandcarbon through their company Lewis Tucker & Co, acted dishonestly by using the company’s intellectual property to further their own interests with a competing fund. Justice Paul Radich stated that the two bankers leveraged Drylandcarbon’s relationships and resources, effectively sidelining the Beverleys.

Details of the Court Ruling

The court concluded that Leckie and Morrison not only misused sensitive information but also breached their fiduciary duties, which included the obligation not to profit personally from their positions. They were found to have acted without good faith, compromising the integrity of the partnership. The judge noted that five other individuals aided Leckie and Morrison in these actions, leading to further legal ramifications.

Justice Radich expressed concern that the actions of Leckie and Morrison were not only unlawful but also oppressive towards the Beverleys. The removal of Ant Beverley as a director of both the Drylandcarbon General Partner and Manager was deemed unlawful and unjust.

“In the oppression proceeding, I found that the breaches on the part of Messrs Leckie and Morrison were conducted in a way that was oppressive, unfairly discriminatory, and unfairly prejudicial to the Beverleys,” Justice Radich said in his judgement.

Responses from the Involved Parties

Following the ruling, the Beverleys released a statement expressing their satisfaction with the court’s findings. They emphasized that the verdict vindicated their position, stating, “Whilst there are other matters to resolve, it heartens us that the judge has found in our favour in such a resounding way.”

In contrast, Leckie, as the managing director of Lewis Tucker & Co, defended his actions. He remarked that the judge recognized the complexities involved in dealing with Beverley and understood the context of the decisions made. “At all times, we believe we have acted with integrity to protect the business, our investors, and our culture,” he stated. Leckie also criticized the Beverleys’ valuation of the business as unrealistic.

The court’s decision marks a significant chapter in the ongoing saga of the Drylandcarbon partnership. As both sides prepare for potential further legal matters, the implications of this ruling will likely resonate throughout the carbon offset industry.