A five-year legal battle over a collapsed carbon offset partnership has concluded with a New Zealand court ordering two bankers to buy out their former partners for $12.1 million, citing breaches of fiduciary duty, misuse of confidential information, and oppressive conduct.
The High Court in Wellington found Will Leckie and Chris Morrison, directors of advisory firm Lewis Tucker & Co, acted improperly while managing the joint venture Drylandcarbon, Radio New Zealand (RNZ) reported today on its website.
The pair were in a 50-50 partnership with Ant and Wendy Beverley through a holding company, H1 Ltd., until the relationship disintegrated in 2019.
According to Justice Paul Radich, Leckie and Morrison used proprietary intellectual property and contacts from Drylandcarbon to develop a separate investment vehicle, Forest Partners, while excluding the Beverleys.
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“It is clear that Messrs Leckie and Morrison leveraged Drylandcarbon relationships, personnel, marketing materials and methods in their pursuit of the Forest Partners opportunity,” the judge was quoted as stating.
The ruling determined that the bankers breached multiple legal duties, including acting in good faith, and improperly removed Ant Beverley from directorship roles—actions deemed unlawful and “oppressive.”
In addition, five individuals were found to have assisted in the misconduct, while Lewis Tucker & Co was ruled to have breached its duty of confidence to all three Drylandcarbon entities.
The Beverleys welcomed the judgment, saying it “vindicated” their position, though acknowledged further issues remain unresolved.
Leckie, in response, defended his actions, saying, “At all times we believe we have acted with integrity to protect the business, our investors, and our culture.”
According to Leckie, the court had rejected what he described as an “unrealistic valuation” by the Beverleys.
The case highlights the legal and ethical risks inherent in early-stage climate finance ventures built on shared intellectual capital.
