Kiwifruit Claim Filed in High Court in Wellington

The Kiwifruit Claim’s statement of claim has been filed in the High Court in Wellington this afternoon.

The claim alleges that Biosecurity NZ was negligent in allowing Psa to be introduced into New Zealand. That cost New Zealand at least $885 million, according to Biosecurity NZ’s own independent study.

The chairman of The Kiwifruit Claim, John Cameron, said it was about “official accountability and just redress for the destruction of so many kiwifruit growers’ livelihoods”.

The Kiwifruit Claim was launched on Monday 29 September and is a class action alleging negligence by the then Biosecurity NZ in allowing Psa into New Zealand. All kiwifruit growers have been invited to join the class action for a one-off fee of $500, $1000 or $1500 depending on the size of their orchard. Post-harvest operators have been invited to join the class action for a one-off fee of $10,000. Only growers and post-harvest operators that sign up to the action can benefit from any settlement or award of damages.

The claim’s media spokeperson, Matthew Hooton, said that as of 5.00 pm yesterday, 18% of gold-kiwifruit growers by volume had paid their one-off fee and completed the formal paperwork to sign up to the claim. An additional 9% of gold growers by volume have expressed interest. Eight percent of green-kiwifruit growers by volume had also signed up, and a further 7% of growers by volume who had signed up were yet to be confirmed as gold or green growers.

The combined losses of those who have already signed up is estimated to be nearly $250 million.

The Kiwifruit Claim’s legal team includes Alan Galbraith QC, Matthew Dunning QC and Parker & Associates. The litigation is being supported by litigation funder, LPF Litigation Funding Limited, a 100% kiwi-owned company, chaired by former Court of Appeal and Supreme Court Judge Bill Wilson QC. Plaintiffs will be represented by a committee consisting of John Cameron (Chairman), Bob Burt and Grant Eynon.

Mr Hooton said LPF had declared the claim’s funding agreement unconditional on 19 November 2014. It will fund all legal costs including security for any adverse costs award in exchange a percentage of any settlement or award of damages.

Strathboss Kiwifruit Ltd has agreed to be the representative plaintiff for growers and Seeka Kiwifruit Industries Ltd to be the representative plaintiff for post-harvest operators. Applications filed with the statement of claim ask the High Court to set a deadline for other growers and post-harvest operators to join the claim. The plaintiffs have also applied to the court for permission to release their statement of claim publicly.

Mr Hooton said the government had responded professionally to the claim with Prime Minister John Key acknowledging growers’ rights to explore the matter in the courts and government ministers indicating that the litigation would be treated entirely separately from other industry issues.

For example, Mr Hooton said Primary Industries Minister Nathan Guy had confirmed again publicly last month that, "as long as the overwhelming majority of kiwifruit growers want to retain the single seller model, the government won’t be making any changes”.

For his part, Economic Development Minister Steven Joyce celebrated the science-led recovery of the kiwifruit industry at a Zespri/Plant & Food Research function earlier this week.

Meanwhile, kiwifruit is the big winner from the New Zealand-South Korea Free Trade Agreement successfully negotiated by Trade Minister Tim Groser and was high on the agenda of Mr Guy’s recent business delegation to India.

“The government has made clear to us that it will not be linking the litigation to other industry issues,” Mr Hooton said. “Based on the advice we have received from ministers, kiwifruit growers and post-harvest operators are able to join the claim confident it will have no impact on issues like the single-point-of-entry marketing system, government support for industry R&D or trade negotiations and other market access issues.”

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.

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