Lombard directors avoid costs on 'misconceived' conviction appeal

The country’s top court has decided not to award costs against the former directors of Lombard Finance after their second bid to appeal their convictions was dismissed on grounds the Supreme Court labelled “completely misconceived.”

In doing so, it says the directors were not well-positioned to “dispassionately” consider the merits of their claims, with one of the directors even apologising for putting it forward.

In May last year, former justice ministers Doug Graham and Bill Jeffries, as well as former Lombard boss Michael Reeves and former director Lawrie Bryant, successfully appealed an increase in their sentences by the Court of Appeal.

But the Supreme Court had in October, 2013, refused leave to appeal against the former directors’ convictions.

All four Lombard directors avoided jail time in 2012 after being found guilty of making untrue statements in investment documents and advertisements in late 2007 and early 2008.

In July, the Supreme Court dismissed an application by the directors to recall the 2013 judgment, refusing them leave to appeal their convictions.

The court found the grounds on which the recall application was based were “completely misconceived.”

“The recall application was presented without anyone having made a serious attempt to analyse the grounds that were to be advanced or the figures relied on.

“There has been substantial mischaracterisation of what happened at trial.”

Today, however, the Supreme Court has decided not to award costs against the directors for making the application.

The judgment says the Supreme Court recognises the directors’ perceptions of events were “coloured by the personal consequences of the convictions.”

“They were not well-positioned to consider dispassionately the merits of the arguments which were advanced.

“They were legally represented in relation to the recall application and may well have thought that, if devoid of merit, the application would not have been advanced by counsel [who is no longer representing them].”

The judgment says Mr Reeves in fact apologised to the court.

“The comments made in our judgment dismissing the recall application speak for themselves and, on reflection, we consider that they do not need reinforcement by way of an order for costs.”

Jeffries and Reeves were each sentenced to 400 hours community work in 2012, while Graham and Bryant were sentenced to 300 hours and each agreed to pay $100,000 to investors.

About $127 million was owed to 4400 Lombard Finance investors when it went into receivership.

Read the judgment here.

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