The High Court in Wellington has given permission for the Kiwifruit Claim to proceed against the Crown - but the industry's grower body doubts the case will be successful.
Neil Trebilco, president of New Zealand Kiwifruit Growers Inc, says legal advice to the organisation is that the likelihood of success is slight.
Photo: File.
'While it is up to growers to make their own decisions on whether or not to be part of the claim,” explains Neil, 'NZKGI's view is that the industry should be looking forward, not to the past.”
Late last week the High Court ruled in favour of the class action over claims Bio-security NZ was negligent in allowing the vine disease Psa to be introduced into New Zealand.
Initially, 72 growers and the post-harvest company Seeka signed up to take the case, and the court has also ruled that other growers and post-harvest operators affected by Psa have until October 9 this year to sign up to claim.
Neil says despite the severe impact of Psa on the industry, this season has seen its biggest-ever harvest of kiwifruit and the future is looking bright.
'One of the issues for any primary industry is that there is no guarantee that bio-security incursions won't happen,” he says.
'If every time one occurs there is court action, there would be a lot of cases.”
NZKGI is pleased with government moves to increase border security, including the provisions of additional resources and plans to implement a levy on passenger arrivals and departures.
'We see these as positive moves,” adds Neil. 'NZKGI and Kiwifruit Vine Health work very closely with government on bio-security and value that partnership.”
Kiwifruit Claim spokesperson, Matthew Hooton, says 72 growers and one post-harvest operator had registered, paid their one-off fee and completed the formal paperwork to sign up to the claim.
'In a nutshell, the claim alleges that Biosecurity NZ was negligent in allowing Psa to be introduced into New Zealand,” explains Matthew.
'It cost New Zealand at least $885 million, according to Biosecurity NZ's own independent study, and the plaintiffs believe it should be held accountable and pay damages for all foreseeable losses.
'All kiwifruit growers and post-harvest operators can join the claim for a one-off fee of $500, $1,000 or $1,500 depending on the size of their orchard, and post-harvest operators for a one-off fee of $10,000.
'It's totally up to them whether or not to join the claim but only growers and post-harvest operators that sign up to the action before the court's October 9 deadline can benefit from any settlement or award of damages.”
The High Court say growers and post-harvest operators should be allowed to bring the proceedings as a representative or class action, which had been opposed by the Crown Law Office.
The court says there is no objection to the litigation funder, LPF Litigation Funding Limited - a 100 per cent kiwi-owned company - and approved the terms of the funding agreement, which had been signed by an initial 72 growers and one post-harvest operator.
An initial $250,000 security for costs is to be lodged by LPF, increasing as the litigation progresses.
The chairman of The Kiwifruit Claim, John Cameron, says the result was expected. 'We believe we have a strong case and we're getting our day in court to see this through,” says John.
The plaintiffs are represented by a committee consisting of John Cameron (chairman), Bob Burt and Grant Eynon. It is expected additional plaintiffs will join the claim now it has been given the go-ahead by the High Court.
The combined losses of those who have already signed up is estimated to be over $280 million. Further information on The Kiwifruit Claim and a forum where growers can lodge their questions about the claim can be found at: www.thekiwifruitclaim.org



1 comment
God Loves a Trier
Posted on 13-07-2015 20:46 | By ROCCO
YEP I will go with that NZKGI assessment that they look to be flying a kite.
Leave a Comment
You must be logged in to make a comment.