Kiwifruit close up

New Zealand’s High Court has granted permission for the Kiwifruit Claim to pursue class action against the country’s Federal Government.

The body alleges that the government-funded Biosecurity New Zealand was negligent in allowing Psa to be introduced into New Zealand and is now seeking compensation for the outbreak of the vine killing disease.

A claim was filed with the High Court earlier this year, although it had been opposed by the Crown Law Office. Late last week the court ruled that growers and post-harvest operators should be allowed to bring the proceedings as a representative or class action.

The court said there was no objection to the litigation funder, LPF Litigation Funding, a 100 per cent New Zealand-owned company, and approved the terms of the funding agreement, which was initially signed by 72 growers and post-harvest operators. The court also set 9 October (2015) as the deadline for other industry members to join the litigation.

“We believe we have a strong case and we're getting our day in court to see this through,” said John Cameron, chairman of the Kiwifruit Claim.

The combined losses of those who have already signed-up to join the litigation is estimated to be over NZ$280m (US$188m), according to Kiwifruit Claim spokesperson Matthew Hooton.

“All kiwifruit growers and post-harvest operators can join the claim for a one-off fee of NZ$500 (US$336), NZ$1,000 (US$ 6,713) or NZ$1,500 (US$1,007) depending on the size of their orchard, and post-harvest operators for a one-off fee of NZ$10,000 (US$6,713),” Hooton explained.