Board lenient on buildings contract

Waimarino Bulletin, Volume 6, Issue 265, 29 November 1988, Page 2

Board lenient on buildings contract

The King Country Electric Power Board became the legal owner of two buildings on their new Ohakune depot land on November 1, but the board has decided not to keep them.

The agreement to purchase the land from Hurlstone Earthmoving Ltd included the clause that the two buildings in question, a house and a "portacom" office were to be removed by November 1 1988, or they would become the property of the landowner (the board). Manager of Hurlstone Earthmoving, Mr Bill Hurlstone asked the board through his lawyer to waive that

part of the contract because of difficulties the company had had over the removal of the buildings. The board heard that the company had sold the buildings, but that the sale was only by way of a verbal agreement, which was subsequently broken. Thus the company was asking for more time to remove the buildings. The letter to the board, which was sent after the deadline date,

said the company and the board "retained a continuing relationship" but. the board's general manager M r Neville Sanders, said this was not so. He told the board at at their last meeting that, after November 1 , staff had discovered that one of the buildings was being removed and that he had stopped this removal because of the contract. Board member Mr Linstrom said he would like the deadline extended. "It would be a good gesture to allow it, and

I think it would be dog-in-the-manger if we stuck to the letter of the contract," he said. He asked the other board members what the board would do with the buildings if it retained them. Mr Sanders told the meeting that the land the buildings occupicd was not needed "at the moment" and that it was the legal aspect he was concerned about. He said if the board decided to relieve Mr Hursltone of the obligation that they make it on the condition that the audit office agree.

Mr Goodman said the board had made it quite clear that the buildings were to be shifted by November 1, which was "plenty of time". He said Mr Hurlstone's actions, in particular in regard to relying on a verbal agreement to sell for so long, were naive. Mr Street agreed, saying that if Mr Hurlstone "had his act together a little better" the delay wouldn't have occurred. The board finally decided to extend the time limit by s i x months, subject to approval from the audit office.