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Can KDC and MRRA strike a deal?

 

Commissioners at the Kaipara District Council have invited the Mangawhai Ratepayers and Residents Association (MRRA) to drop its proceedings against the council in return for council formally acknowledging past errors by way of a series of declarations before the High Court.

Chair of commissioners John Robertson advises that council has instructed its legal counsel, David Goddard QC, to approach the counsel for the MRRA to nut out a way forward to settle the action.

“This initiative has been taken in order to try to bring an end to the very expensive legal proceedings underway,” said Mr Robertson.

“Commissioners have always regretted the court action taken by MRRA. Judicial Review proceedings are very expensive. We prefer to spend rates on road maintenance and community development, rather than legal and court costs.

Mr Robertson says it has become clear in recent weeks that various members of the MRRA executive seek a way that brings legal proceedings to an end, and commissioners have been asked to help find a way to such a settlement.

“There are many issues that council and the MRRA agree on that do not need court involvement – the history of poor decision-making is acknowledged by both organisations,” said Mr Robertson.

While the MRRA determines its response, the Kaipara District Council has lodged an appeal against a court decision to decline the council’s application for strike-out in relation to the protected transaction issue.

“Council needs the court to provide a determination on the interpretation of the protected transaction clauses within the Local Government Act. This is a relatively narrow but very important point that is being challenged by the MRRA. It is however a key point of law. It is about whether or not council can set rates to repay the debt incurred by the Mangawhai Community Wastewater Scheme.

“Our legal advice is very clear and we are very confident of our position on this issue. Saying that, we would far prefer not to be involved in court proceedings at all,” said Mr Robertson.

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