Court of Appeal judgment Takaro Properties Limited v Rowling [1987] UKPC 34 is a cited case in New Zealand regarding negligence by the government [1] In 1968, Richard Rush, a wealthy businessman from the United States, purchased the 2,591 acre Takaro Station from the Crown, that borders Lake Te Anau with the plan to develop a luxury lodge for wealthy visitors from overseas.

Due to the financial difficulties, Takaro sought to sell 90% of the shares to the Japanese company Mitsubishi, which planned to develop a golf course and up to 136 holiday homes.

However, at the time, under the Reserve Bank Act [1964] for such a foreign investor to be able to buy shares in a New Zealand company, it required the consent of the Minister of Finance.

Bill Rowling, the finance minister at the time, refused to consent to the investment on the basis that he wanted the business to revert to a New Zealand owner.

By now however, as a result of the Yom Kippur War, a worldwide economic recession had begun to occur, causing Mitsubishi to reconsider whether to invest in a luxury lodge, and they ultimately pulled out of the deal.