KEY POINTS:
Fishing Company Amaltal has taken a further knock in its multi-million dollar legal fight with a former Japanese business partner.
Judgment in the case was initially ordered against Amaltal in the High Court for $6.12 million.
The Court of Appeal then reduced that by $1.2 million, but the Supreme Court has now lifted it again by $910,000 taking the total to $5.83 million.
Amaltal, at the time owned by New Zealand companies Amalgamated Marketing and Talley's Fisheries, had carried out the accounting and tax return functions of a company in which it and Japanese fishing company Maruha were the only shareholders.
Amaltal inflated the level of certain payments Maruha was required to make to the company during the five years from 1986 to 1991, the Supreme Court decision said.
The overpayments related to the calculation of tax payable by the company jointly owned by Maruha and Amaltal.
The Court of Appeal had reduced the judgment sum by $1.2m, considering that some tax payments made by Amaltal had conferred a benefit on Maruha which should be offset against the overpayments.
But the Supreme Court said Amaltal had failed to show that Maruha received an incontrovertible benefit for $1.2m and was not entitled to a deduction of that amount.
A somewhat lesser benefit, not previously brought to account, had been identified, which counsel agreed between them had been of $288,000.
Maruha had also asked the Supreme Court to restore a finding of the High Court that Amaltal was guilty of a breach of fiduciary duty, later overturned by the Court of Appeal.
Maruha wanted to argue at an upcoming Court of Appeal hearing that the rate of interest payable on the judgment sum should be greater because there was a fiduciary breach, the Supreme Court said.
It found Amaltal had indeed breached a fiduciary obligation it owed Maruha.
The Supreme Court also agreed with the two lower courts that Amaltal was guilty of deceit.
- NZPA
