A Te Puke real estate agent has been ordered to pay more than $1 million in damages after failing to inform his client of a higher offer for their kiwifruit orchard.

The high court decision deemed that PGG Wrightson Real Estate Limited agent Stan Robb failed to disclose details of a prospective buyer to brothers Ross and Colin Stevenson over the sale of their Maketu Road orchard.

The first major orchard sale after Psa was settled in court.

Despite completing the sale for $3.8 million, a second prospective buyer was prepared to pay considerably more for the 66 hectare fruit farm.

The claim stated that the market value of the orchard was $4.9 million, and that $1.1 million was lost due to the subsequent sale. The defendants' counter claimed for the commission, which the sellers refused to pay.

The claim is that Robb/PGG Wrightson sold the orchard to Paul Jones, representing DMS packhouse, and turned down a higher offer from Graig Lemon, representing rivasl Mpac packhouse, while telling the Stevensons there was only one offer on the table.

'It is clear to me that Mr Robb misled Mr Lemon on 14 November, 2012 when he chose not to tell him that Mr Jones and the Stevenson brothers had reached an agreement in principle,” says Justice Mark Woolford in his decision.

'Mr Robb said that all was ‘put on hold', and his decision to not inform Mr Lemon of the agreement gave the misleading impression that there was no need to hurry in making an offer for the orchard.

'I regret that I have to make this finding as Mr Robb is a man of good character, but I have reached the view that, on this occasion, he committed a regrettable lapse of judgement.

'He engaged in conduct that was misleading or deceptive by deliberately choosing not to tell Mr Lemon about the agreement in principle for fear of ‘upsetting the apple cart'.

'Mr Robb had reached the erroneous view that Mr Ross Stevenson was not interested in negotiating with Mr Lemon and thought that if he told Mr Lemon about the agreement in principle it might in some way cause difficulty with the deal with Mr Jones.

'Mr Robb may genuinely have believed that a sale to Mr Jones at $3.8 million was the best deal that could be achieved, but it was not. Mr Jones had been authorised by his partners to offer up to $4 million at the initial meeting with the Stevenson brothers.

'If there was a competing offer, Mr Jones and his partners may well have offered more. Mr Lemon thought that a successful bidder at auction may have to pay up to $5 million for the orchard. He too was keen to make an offer before the auction. He was denied that opportunity by Mr Robb.”

Justice Woolford set damages as the difference between the market value of the orchard and the sale price.

Judgment in favour of the plaintiff against the defendants is the sum of $1,101,375.

Interest of over $104,000 is also payable by the defendants from the date of settlement of the sale of the orchard on 5 December 2012 to the date of judgment (Oct 29, 2014) at the Judicature Act rate of 5 per cent (a daily rate of $150.94). Costs are payable by the defendants.

Justice Woolford adds: 'Mr Robb acknowledges that he deliberately mislead a prospective purchaser by omitting to tell him that the plaintiff had agreed in principle to sell the orchard. Rather, he told the prospective purchaser that the sale was all on hold.

'This advice seriously disadvantaged the plaintiff. In those circumstances, Wrightsons is not entitled to the commission. Their counter-claim for the commission is therefore dismissed.”

Read the full decision here.