Turners to appeal court ruling

Photo / Bay of Plenty Times

Turners and Growers Ltd says it will appeal a High Court judgment which found in favour of kiwifruit marketer Zespri.

A High Court judgment on Friday declined a first cause of action and struck out the second and third cause of action by Turners and Growers.

Zespri called on Turners and Growers not to appeal the judgment.

Turners and Growers chairman Tony Gibbs said today that the company had reviewed the judgment in detail during the weekend and would be lodging an appeal as soon as possible.

Gibbs said while he appreciated that Zespri wished to avoid further scrutiny of its behaviour and its extraordinary position as a private company with a statutory monopoly, the company's call for Turners and Growers not to appeal the High Court decision was "wishful thinking".

The court found that the Kiwifruit Export Regulations 1999 were validly established 11 years ago and that Kiwifruit New Zealand, the industry regulator, has exclusive jurisdiction to consider complaints under those regulations.

Zespri chief executive Lain Jager said last week that 17 companies were exporting kiwifruit from New Zealand through collaborative marketing.

"We have always believed that the collaborative marketing provisions provide the best and least-cost path forward for Turners and Growers and others to develop export opportunities that will benefit New Zealand kiwifruit growers and their own shareholders," he said.

Under the Kiwifruit Export Regulations 1999 no one can export kiwifruit from New Zealand, other than for consumption in Australia, apart from Zespri.

Turners and Growers challenged the export monopoly and claimed breaches of non-discrimination and non-diversification provisions in the regulations.

The first principal issue in the case was whether the regulations were validly made under the Restructuring Act.

Zespri argued the industry and major political parties were in favour of retaining a single desk seller regime.

It argued that the Commerce Act and Bill of Rights Act did not help Turners and Growers' case.

The judgment said Turners and Growers did not establish that the regulations had no effect.

- NZPA