‘Dirty dairy’ farmer to sue Fonterra for losses

financial consequences’’ which resulted in the appointment of receivers.

Woolley wanted $1.8m from Fonterra to cover the loss of milk, another $629,486 for the cost of paying out his contract milker, and an inquiry to find out how much Fonterra should pay towards the $3.4m cost of receivership and other expenses.

Fonterra sought a summary judgment from Associate Judge John Matthews in the High Court to stop Woolley from suing.

The company had to prove that on the balance of probabilities, would fail.

At a hearing in November, Fonterra’s lawyer Murray Branch said the company was under pressure from the council not to collect milk from Glenmae.

Despite receiving the requested certificate, the council’s lawyer Miriam Radich, of Radich Law, said Woolley had not yet met the enforcement order.

Woolley’s lawyer David Clark said the case should be referred to the company’s milk commissioner, appointed as an independent solicitor to resolve disputes between Fonterra and shareholders. Woolley’s suit

But the milk commissioner was Peter Radich – the council’s lawyer’s father, and partner at the same practice.

‘‘Obviously that cannot happen as he is not independent as far as this matter is concerned,’’ Clark wrote to Fonterra’s lawyer, Alison Brewer-shearer.

She replied that as long as council disputed Woolley’s entitlement to start milking again, Fonterra would also refuse to take the milk.

Clark accused Fonterra of treating Woolley’s livelihood in a flippant manner.

Brewer-shearer said the company was giving ‘‘careful consideration’’ to the issues and would ‘‘continue to provide as much assistance as possible’’.

She told the court Fonterra did not want to collect milk in breach of Environment Court orders.

Judge Matthews said Fonterra’s suspension notice was not the same as a termination of contract, and implied that when the problem causing the suspension was fixed, the suspension would end.

Fonterra’s application fell ‘‘well short’’ of proving Woolley’s suit would fail, Judge Matthews said.

A trial date for Woolley’s suit has not yet been set.