Crown costs of kiwifruit appeal balloon to $6m
Taxpayers have so far spent $6 million to defend the kiwifruit claim case, and the Appeal Court hearing has yet to start.
This makes it the most expensive primary-sector court case on record.
In June the 212 kiwifruit growers who joined a class action won a High Court case, which found the Ministry for Primary Industries (MPI) was negligent in allowing the disease Psa into the country in 2010. They are claim- ing $450m compensation.
MPI said it was taking the case to appeal because it sought to ‘‘clarify the scope for government regulators to be sued in negligence’’.
It added the High Court finding had the potential to ‘‘significantly impact on the ministry’s biosecurity operations’’.
The claimants have filed a cross-appeal on the grounds that packing company Seeka was owed a duty of care, contrary to the High Court finding, and that MPI was negligent in failing to inspect a shipment of banned kiwifruit plant material, infected with Psa, when it arrived from China.
The 12-week High Court case was funded by litigation funder LPF Group, chaired by former Supreme Court judge Bill Wilson.
As a funder of the class action, LPF Group is to receive a percentage of the compensation granted.
In response to an Official Information Act request, MPI said the $6m figure did not include internal staffing costs, and it could not provide an exact figure for the total time spent by staff.
The costs for consultants and experts paid directly by MPI was $400,000.
Kiwifruit Claim chairman John Cameron would not divulge how much his group had spent on the case, but said it was much less than the Crown’s costs.
‘‘The landmark decision, which found MPI completely failed to do their job and was negligent in letting Psa into New Zealand, was emphatic,’’ he said.
‘‘Litigation is expensive and the Government’s move to appeal the High Court decision will only add to the costs already incurred by the taxpayer.
‘‘We believe the Government is taking a massive risk in appealing the judge’s clear findings. Enough is enough – it’s time for MPI to accept full responsibility.’’
The case has the potential of heading to the Supreme Court.