The firm allegedly gave flawed advice to Phil Mauger’s father
Christchurch mayor Phil Mauger and his siblings have filed a suit against full-service firm Saunders & Co in High Court after the firm supposedly provided flawed advice to their father Warner, reported the NZ Herald.
In December 2018, Warner Mauger had signed two deeds giving $1.035m to his employees Simon Tucker and Louise Hermansson, according to The Press. Tucker was set to receive $550,000 while Hermansson was to get $485,000.
The money was sent from Warner Mauger’s personal account to Saunders & Co’s trust account, per a High Court ruling seen by the Herald. Warner Mauger’s solicitor Cran Bull, who was once a partner at Saunders & Co, said the money would not be released to the employees until Warner Mauger secured a medical certificate indicating that he had capacity to issue the gifts.
Warner Mauger’s doctor Harsed Chima provided the certificate in January 2019 confirming that Warner Mauger, who suffered from dementia, was of sound mind at the time. However, the money was restored to Warner Mauger after his daughter Penelope Cron went to court on his behalf, the Herald reported.
Penelope Cron and brothers Phil, Timothy and Stephen Mauger kept up the legal fight against Tucker and Hermansson after their father died in November 2020. The parties settled in 2024. Subsequently, the siblings turned their attention to Saunders & Co, claiming that its advice to their father was flawed.
Meanwhile, Saunders & Co sued Chima; it asked Chima to respond to queries about his process in determining patients’ capacity and his statement to Warner Mauger’s solicitor. Chima rejected the firm’s claims and argued that one allegation had been filed beyond the ordinary six-year time limit.
Saunders & Co said it was not aware it might experience loss until Warner Mauger’s family issued their formal notification of potential claims in October 2023. Chima requested documents from before this period, including records of communications with Saunders & Co’s insurer. The firm countered that such documents were not relevant, and groups of them were considered privileged.
However, Bill Gambrill, associate judge at the High Court at Christchurch, determined that the records could be relevant in terms of what information the firm might have been aware of then. Thus, the court ordered Saunders & Co to list the documents in question one by one, including the bases and start dates of privilege claims.
The judge shot down the requirement for Chima to respond to the queries being disputed, indicating that they could be raised during cross-examination. Gambrill’s judgment focused on trial preparation, according to the Herald.
The case is set to go to trial on 22 February 2027.
