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Blue Chip Investors Lose Second Court Battle

Contributor:
Fuseworks Media
Fuseworks Media

Auckland, Nov 28 NZPA - Investors in failed property company Blue Chip have suffered a second setback in the High Court.

A group of 30 people have been told they cannot get out of sale and purchase agreements on three central Auckland developments, the New Zealand Herald reported today.

The group argued during a hearing in May and June that they had been misled by the investments.

As part of a product promoted by Blue Chip, the investors effectively put down a deposit on unbuilt apartments and were paid for the use of their funds.

They were told Blue Chip would purchase the apartments on completion and they would not have to own them.

The apartments have since been completed and the developers are looking to settle.

The investors signed sale and purchase agreements, and Justice Geoffrey Venning ruled that these agreements were valid.

He said a common theme in the investors' evidence was that they did not read the agreements and some did not realise what they were entering into.

However, he said signing a document without reading it did not excuse a party from the consequences.

In September, Whangarei pensioners Bruce and Judy Bartle lost their court case to have their Blue Chip-related mortgages set aside.

They had argued that finance company GE Money (GE Custodians) had breached its duty of care by lending them around NZ$640,000, which was used to buy a Blue Chip apartment.

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