New Zealand’s High Court has ruled in favour of kiwifruit marketer Zespri in the case brought against it by Turners & Growers (T&G).
A ruling in the Auckland High Court case has struck out all three of T&G’s claims.
The High Court judgement established that the two elements of New Zealand’s Kiwifruit Export Regulations 1999 questioned by T&G were legal, firming up the legislature framework upon which the Zespri model is based, and that industry regulator Kiwifruit New Zealand has exclusive jurisdiction to consider complains under the Regulations.
The ruling is a significant blow for T&G’s campaign to deregulate the country’s kiwifruit industry, but a considerable relief to New Zealand's kiwifruit growers, Zespri ceo Lain Jager told Fruitnet.com.
“I imagine the growers are relieved,” he said. “The ruling gives us some security now that the regulations have been found legal through this challenge. What we’re all hoping for is that this provides us a platform to move forward. But it’s early days yet, and T&G will be taking stock.”
Jager called on the company to take the opportunity to instead reconsider working with Zespri via a collaborative marketing arrangement.
“The court today rejecting T&G’s claims represents a natural juncture in its political campaign to break up the New Zealand kiwifruit industry and it would be highly desirable if T&G now decided not to subject kiwifruit growers, Zespri and its own shareholders to the further expense of prolonged litigation through an appeal,” Jager said.
“The New Zealand government, the New Zealand opposition, 90 per cent of kiwifruit growers and now the High Court of New Zealand have each confirmed their support for the existing arrangements. Now is the time for common sense to prevail and for T&G to put forward sensible and robust collaborative marketing proposals capable of being accepted by the industry regulator.”
A six-day substantive hearing is also scheduled to start next May, which will hear T&G’s remaining claims not covered by the ruling, principally allegations that Zespri has been acting contrary to New Zealand's Commerce Act.
Zespri has also been awarded costs in the case, with the amount yet to be determined.
T&G is also likely to now take its claims that Zespri has been acting in contravention to the Kiwifruit Export Regulations 1999 before Kiwifruit New Zealand, now confirmed as the correct forum for the complaints.
“What we’re hoping is to move forward in this industry framework,” said. “If T&G wants to pursue their concerns legally, they’ll have to do it through Kiwifruit New Zealand.”
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