Olive grower must pay $129k contract
A Hawke’s Bay grower has been ordered to pay almost $130,000 for the processing of olives it never provided.
In a High Court decision released last week, Associate Judge Kenneth Johnston said if Matapiro Olives failed to pay within three weeks, it could face liquidation.
The order comes two years after Matapiro managing director John Arthur and The Olive Press chairman Rodney Lingard agreed to a contract for olive processing.
The judge said emails between Arthur and Lingard outlined their agreement, in which Matapiro would provide
250 tonnes of olives for the 2018,
2019 and 2020 seasons, that The Olive Press would process.
Matapiro consigned 350 tonnes of olives to The Olive Press in
2018 but did not pay for their processing within a set timeframe. That led to The Olive Press serving a statutory demand and filing an application to put Matapiro into liquidation.
The 2019 olive season was not a good one, and Matapiro produced only 12 tonnes. However, the fruit was sold to a third party, with no olives going to The Olive Press. In September last year The Olive Press sent Matapiro an invoice for the processing of 250 tonnes of olives, as outlined in the agreement.
When Matapiro contested its liability to pay, The Olive Press served a statutory demand for $129,375.
The judge’s decision, released last week, said Matapiro’s failure to consign any olives in the 2019 season meant it was obliged to pay for the processing of 250 tonnes of olives at the agreed rate.
‘‘In my judgment, The Olive Press has a claim for a debt for a liquidated amount and a proper basis for its statutory demand,’’ he said.
While The Olive Press had sought an order to have Matapiro wound up, the judge decided against it.
‘‘It appears to me that the more appropriate course is to dismiss Matapiro’s application for an order setting aside the statutory demand, leaving it to The Olive Press to proceed with winding-up proceedings,’’ he said.
‘‘Pre-emptively to wind up Matapiro at this point would deprive that company of the opportunity to resolve the outstanding issues between the parties in one way or another, and advance whatever arguments it may have available to it in the context of winding-up proceedings.’’
The judge dismissed Matapiro’s application for an order setting aside The Olive Press’ statutory demand and ordered Matapiro to pay the debt within 15 working days, by July 10. ‘‘In default of payment, The Olive Press may make an application to put the company into liquidation.’’