Nelson agrichemical supplier Adama paid thirteen million dollars compensation following crop damage to apples caused by contaminated fungicide.
A 2017 importation of fungicide Mancozeb was found to be contaminated with azoxytrobin. Adama New Zealand Ltd is suing Singapore-based supplier Raam Chem Pte Ltd. Raam denies liability. Claiming only to be a ‘fixer,’ it says the problem lies further down the supply chain. The High Court was told of a comprehensive list of separate India-based companies all involved: supplying raw stock, blending chemicals, packaging and labelling. Six different companies in India had input into the final product.
Seeking compensation, Adama did not chase companies down a long supply chain into the notoriously problematic India legal system. It sued Raam in the New Zealand courts, alleging breach of contract. This case has yet to be heard.
Raam in turn is taking legal action in New Zealand against supply chain companies in India it alleges are to blame. Notices of its claim were served on companies in India. The High Court was told all companies bar one simply ignored Raam’s claim. Evidence was given that Raam may have trouble enforcing in the India courts a New Zealand court judgment where the defendant did not appear. One company in the supply chain challenged Raam’s right to sue in New Zealand. Chemical supplier UPL Ltd said New Zealand courts had no jurisdiction. Associate Judge Johnston ordered UPL to file a statement of defence; the crop damage occurred in New Zealand and UPL’s alleged role was tied to litigation between Adama and Raam.
Adama New Zealand Ltd v. Raam Chem Pte Ltd – High Court (29.05.20)
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