Bankrupt man’s bid for $78m struck out

A high-profile failed Manawatu¯ businessman who once set his ute on fire on the steps of Parliament has had an attempt to sue ANZ Bank for nearly $80 million thrown out of court.

Ken Thurston, of Bunnythorpe, represented himself in the High Court at Palmerston North, and claimed the bank sold 17 of his properties through mortgagee sales without serving him with the required documents in 2010.

He was subsequently made bankrupt in October 2010 and many of his businesses were placed into liquidation.

Thurston was claiming damages of $78.3m against the bank.

‘‘The crux of the matter, Mr Thurston submitted, was that the properties were stripped from him without the requisite notices and before either company was put into receivership or liquidation,’’ Justice Karen Clark wrote in the judgment.

The case related to 17 properties owned by two companies Thurston was the sole shareholder of – Aotearoa Coolstores and Tawera Land Company.

Thurston owed the bank between $30m and $40m back in 2010.

The bank subsequently put the 17 properties under mortgagee sales in 2010 and 2011.

Once the liquidation of Thurston’s businesses were settled, the bank was still owed about $4m from Thurston Group.

The Manawatu¯ Standard reported in 2013 that creditors were left $14m out of pocket by the failed businesses.

Although the bank did not provide proof that the two Property Law Act notices required to be served were delivered, it was successful in its application in December for the claim to be struck out.

Thurston’s claim included accusations of a bank employee, called Mr L in the judgment, demanding he stand down as director of one of the businesses, and that he hid payments in different bank accounts.

Clark said some of Thurston’s ‘‘pleadings border on being scandalous’’.

She noted the figure Thurston had claimed was the value of the properties the bank sold.

‘‘There is no relationship between the relief sought and the would-be cause of action, that is, the $78.3m claimed as a result of the alleged failure to serve Property Law Act notices.’’

According to the judgment, ANZ’S lawyers said the way the claim was laid out, the business ‘‘cannot understand the legal basis for the allegations made against it’’.

Clark decided Thurston’s claim could be struck out for two reasons.

‘‘The statement of claim is not clear or intelligible,’’ she wrote.

‘‘There is no cause of action. Nor is it clear even what facts are relied on as amounting to the proposed cause of action.’’

Thurston came under the national spotlight after he was arrested when he set his ute on fire in front of Parliament on Budget day 2016. Last year, he was convicted of setting fire to a vehicle with reckless disregard for the safety of others.