When buying ex-RAF Wessex helicopters, Mark Ford took a punt on getting Civil Aviation certification to use them for heli-logging operations. With certification refused, his $56 million claim alleging deceit and misfeasance by Civil Aviation failed.
Stratford-based Mark Ford intended to use the helicopters to lift logs out of remote central North Island forests for delivery to his sawmill. At the time of his purchases, use of Wessex helicopters did not have a good track record; a pilot was killed in February 2001 and the Wessex written off when it crashed lifting logs near Motueka. Owner of that helicopter, Bruce O’Malley, subsequently pleaded guilty to Civil Aviation charges of using the aircraft for commercial purposes in breach of its certification conditions.
The High Court was told Mr Ford applied in 2004 for Civil Aviation certification permitting use of his Wessex helicopters for commercial logging. Since Wessex machines were ex-military and not commercial aircraft, detailed surveys and test flights were required. Before committing to the cost of certification, Mr Ford sought acknowledgement from Civil Aviation that heli-logging would be permitted on ‘satisfactory completion of the test and analysis.’ No such pre-approval was given. Civil Aviation did indicate his proposed certification testing programme was appropriate.
When Civil Aviation certification was subsequently refused, Mr Ford sued for ten years’ lost profits calculated at $56 million and as an alternative sued for $5.2 million considered wasted expenditure on purchasing the aircraft and paying for certification. He alleged Civil Aviation did not consider his application on its merits, instead imposing a blanket restriction on use of ex-military helicopters for commercial use. Lobbying members of parliament and laying complaints with the Auditor-General and Ombudsmens’ Office came to nothing.
Mr Ford alleged dishonesty by Civil Aviation in the way it sought expert advice and interpreted expert reports as part of the Wessex testing programme. After a seven week High Court hearing, the trial judge ruled Civil Aviation acted properly and did not act dishonestly; a ruling upheld by the Court of Appeal.
Helilogging Ltd v. Civil Aviation Authority – Court of Appeal (25.02.21)
21.040