In March 2020, farmer Jim Veint sold Arcadia Station, for $14m to Auckland developer Tim Edney’s The Station at Waitiri Ltd.
The property has featured in about 20 movies, including The Lord of the Rings, and countless television advertisements.
Until last month, Mr Veint had still only been paid a $1,325,485 deposit, and $737,000 for stock, plant and machinery, which was held in his lawyer’s trust account.
Mr Edney’s company claimed it could not pay the balance for the 257ha sheep and beef farm — which actor Sir Ian McKellen calls his favourite place on Earth — as there was a caveat on the titles.
It alleged Mr Veint was required under the sales and purchase agreement to remove the caveat — placed by New Zealand expat Dr David Teece over about half the farm when he bought another block from Mr Veint in 1997.
"The caveat was all-pervasive over all the titles," Mr Edney said.
Initially, his company deferred settlement to allow Mr Veint to remove the caveat.
When he did not, it lodged a statement of claim in the High Court at Invercargill, ordering him to pay deferred interest of $1,570,470.84, accumulated over 11 months, and default interest at a rate of $4592.02 a day from November 9, 2021, "until settlement".
Mr Edney said Mr Veint, who was now 86, finally cleared the caveat just before Christmas, "and we settled within a week".
He said he paid the balance of the $14m but held back about $4.5m in default interest, "and that’s now sitting in our solicitor’s trust account".
In April, the High Court at Invercargill will decide whether Mr Edney’s company keeps that $4.5m or it goes to Mr Veint.
Mr Veint argued Mr Edney already knew about the caveat when he signed to buy Arcadia.
In 2021, Mr Veint — who had farmed Arcadia since 1960, after his parents had bought it nine years earlier — said he was unconcerned despite facing a sizeable default interest claim.
"At this stage, all the facts are on my side, really, I think, so I’m relaxed and comfortable.
"I don’t lose any sleep over it."
Mr Edney said last week buying Arcadia had been "a long journey".
"Four years is a long time to sit in limbo land, looking at Jim telling people he was OK and he was sleeping well and all those sort of things when you knew the facts were different."
Mr Veint said he made good money from film and TV shoots, but farming was still a bigger earner.
