M bovis compo tipped to rise

South Canterbury dairy farmers Aad and Wilma van Leeuwen have won a significant victory in the High Court, which could see them net a hefty sum for extra compensation following the impact of the cattle disease Mycoplasma bovis on their herds.

While the van Leeuwens, who run 13 dairy farms and six dry stock farms, have already been paid out $6.3 million by the Ministry for Primary Industries, they are seeking further compensation for professional consultancy fees, bank charges and other costs.

A source who did not want to be named said the amount could go as high as $3m; in the High Court case it was revealed the van Leeuwens had made a claim of $428,000 for professional services, but this had been rejected by MPI.

Aad van Leeuwen said the case could set a precedent for other farmers who had incurred costs that were not recognised by MPI.

‘‘It’s one of the reasons we have taken this on, because it will set a precedent. We’re very happy that the judge has ruled our way but there’s still a long way to go. They [the Crown] could always appeal and that could take months and months so it’s very hard to judge. Could it go as high as $3m? I’m not going to discuss figures.’’

High-profile class action lawyer Grant Cameron is representing the van Leeuwens, on whose farms the cattle disease was first detected in July 2018.

Following the Government’s decision last year to press ahead with an attempted eradication of

‘‘It’s one of the reasons we have taken this on, because it will set a precedent.’’ Aad van Leeuwen

the disease, a cost of $886m was estimated to cover eradication and compensation.

At the High Court hearing, the van Leeuwens sought two declarations: that finance costs related to the M bovis response, and professional consultancy costs to limit financial losses, were in principle recoverable.

MPI argued the High Court had no jurisdiction to entertain the case, saying it should be struck out.

In 2018 it prepared a guide to compensation in which it warned claimants against making the ‘‘mistake’’ of including professional fees such as hiring an agent or accountant or lawyer to prepare a claim.

Its explanation for why this was a mistake was that MPI could not pay for those ‘‘because preparing a claim is not a loss caused by MPI exercising powers under the Act for the eradication of M bovis’’.

The case will now have to go to arbitration, which will decide if the van Leeuwens have a valid legal argument, before returning it to the High Court.

Justice Francis Cooke ruled the van Leeuwens were entitled to be awarded costs.