Supported by fellow farmers, Van Leeuwen Group is challenging Primary Industries stance on recoverable expenses following a nationwide mycoplasma bovis cull. In dispute: finance costs and professional fees incurred when preparing compensation claims.
Some 1500 farmers claimed government compensation after stock infected with M.bovis were culled. Van Leeuwen Group Ltd was paid $6.3 million. It claims a further $428,000. Van Leeuwen operates 13 dairy farms and six dry stock farms. The Biosecurity Act requires government pay compensation after ordering compulsory culls. The extent of compensation payable has never before been before the courts. Primary Industries said the Act requires Van Leeuwen’s disputed claim first go to arbitration. Lawyers argue arbitration imposed by statute is not true arbitration; farmers did not agree to arbitrate. Arbitration is forced on them. Farmers fear Primary Industries might game the system; expecting individual farmers to abandon disputed claims over small monetary sums rather than bear costs of arbitration. Better that the High Court give a judicial ruling on the Act’s interpretation, Van Leeuwen Group argued, establishing a ruling which can then be applied across all claims made.
Justice Cooke ruled the High Court should first look at the Act’s application, despite Primary Industries’ demands Van Leeuwen Group go to arbitration.
Van Leeuwen Group Ltd v. Attorney-General – High Court (19.02.20)
20.033