Hagaman family avoid public trial over battle for assets
Saturday, 9 September 2023
A bitter family dispute over assets connected with deceased Christchurch rich lister Earl Hagaman has been resolved prior to trial.
The dispute was scheduled for a 10-week trial in the High Court in Christchurch but the parties settled before the start date of August 14. The proceeding started in 2018.
Earl Hagaman and his fifth wife Lani presided over a fortune thought to be worth about $180 million. They had three children - Zane, Skye and Toya.
The case pitched Hagaman’s children from previous marriages - Damon, Jennifer, Kimberley and Keith Hagaman - against Lani and various companies.
American-born Hagaman, the founder of the Scenic Hotel chain, a philanthropist, and a Companion of the New Zealand Order of Merit, died aged 92 in 2017. He and Lani were married for over 30 years, getting together when she was barely in her 20s and he was in his 60s.
In the litigation, the children from Hagaman’s previous marriages alleged their father had made representations and promises to them about various assets.
They contended the Naciemento Trust was established by Hagaman for their benefit but Hagaman, “contrary to assurances he made to them”, saw them removed as beneficiaries and ultimately the assets ended up for the benefit of his New Zealand children and/or Lani.
They also claimed they were beneficiaries of another trust, the Scenic Trust, set up by Hagaman.
The case was expected to cover an affidavit sworn by Hagaman in December 2008.
The affidavit backed an application by Lani to the Family Court to have her relationship property agreement with Hagaman set aside, and for new orders dividing property.
In the affidavit Hagaman explained he accepted everything Lani said in her affidavit and concluded it by saying: “For reasons which my legal advisers have explained to me, it is not appropriate in this case that I formally consent to the making of [the orders sought] but I do not oppose them being made.”
One of the expected issues at trial was Hagaman’s mental competence to make decisions. The claimants alleged he was losing his mental acuity when he divested a significant business asset in 2015.
The trial was to view DVDs of depositions provided by Hagaman in regards to a claim against him by his previous wife Barbara, who is Jennifer’s mother.
The settlement of the current litigation is understood to contain confidentiality agreements and neither Lani nor any of the claimants could be reached on Friday.
Jennifer and her husband Felton moved to New Zealand from the United States to be with Hagaman but returned home. They alleged they sustained costs and losses when they returned to the US.
Hagaman’s will left a $1.1m gift to Jennifer on the condition she returned a hard drive, currently held by legal firm Buddle Findlay in Christchurch, undamaged and within six months of his death. It’s not known what the hard drive contained.
Damon was estranged from his father and received money and other assets in a 2005 settlement with his father.
Keith alleged he ceased his full-time property and real estate business in California to spend significant amounts of time in New Zealand “on reliance of representations made by his father”.