Bank accounts of Wairarapa beekeeper First Honey NZ Ltd controlled by Daniel Watson have been frozen following a High Court ruling there was an arguable case that First Honey wrongfully got its hands on $648,250 export sale proceeds remitted from the US; funds claimed by Whanganui honey exporter, Settlers Honey Ltd.
Henry Mathews, Settlers Honey’ director, claims First Honey NZ has no right to the money and alleges his money is at risk; First Honey is in financial difficulty, he alleges.
The High Court was told of a deal in late 2020 where US-based First Honey US purchased a shipping container load of medical grade manuka honey from Settlers Honey at a price of $648,254. It was agreed Mr Watson’s First Honey NZ would get a commission calculated at one dollar per kilogram for arranging the export deal. There is a family connection between First Honey NZ and First Honey US. Mr Watson’s brother-in-law manages First Honey US. Settlers Honey billed First Honey US as its customer. No payment was received. Enquiries identified that First Honey US had made payment; not to Settlers Honey, but to First Honey NZ who refused to hand over the funds. It claimed a set-off; First Honey NZ says it is owed money by Settlers Honey.
Ordering First Honey NZ’s bank accounts with ANZ and ASB frozen, Justice Campbell ruled there was an arguable case that First Honey NZ went beyond its authority as an export agent by arranging to receive payment from the US and by retaining the money.
When agents act as brokers to arrange a deal, there is no general legal rule that the agent also has authority to collect payment.
A further court hearing is needed to determine whether First Honey NZ did have authority to receive the $648,254 and for First Honey NZ to prove its claimed set off against Settlers Honey.
Settlers Honey Ltd v. First Honey NZ Ltd – High Court (14.05.21)
21.081
Post judgment note: One week later, the freezing order was lifted by order of the High Court with the proviso First Honey NZ was to first provide pre-trial financial security in favour of Settlers Honey sufficient to meet Settlers' claim should it be successful.