Michael Fallows, of Te Puke, lodged a claim with the Disputes Tribunal in Tauranga, saying the company misled his family by lying in its prospectus, The New Zealand Herald reported.
He had put $500 on term deposit with Hanover in 2007 for his 14-year-old daughter Katie.
The investment was due to mature in January 2012. Mr Fallows is claiming the principal plus interest at 8.35 percent.
Hanover filed actions in the High Court against Mr Fallows and the tribunal, saying the latter does not have jurisdiction to decide the matter.
The company also said it cannot pay the money because of a moratorium agreed with investors.
The High Court at Auckland is to look at Hanover's application over Mr Fallows' case tomorrow, while the tribunal is due to hear his claim in Tauranga on September 14.
Hanover's legal compliance manager Angela MacDonald said that under the Securities Act, only the High Court could consider allegations of a misleading prospectus.
Hanover also said Mr Fallows' claim was part of a campaign by Mark Cooper, a property developer it has been battling in the courts.
In a letter to the tribunal, Mr Cooper said he had agreed to help Mr Fallows, but was involved only as a witness.
