Murray Ferris’ company was entitled to $162,000 for the value of trees planted out on a Northland forestry site, after left waiting for over five years with Mangamuka owners failing to sign paperwork extending existing forestry rights.
Forestry company Kauapepe Forest Ltd, controlled by Mr Ferris, acquired forestry rights over 488 hectares in 2010, buying trees ready for harvest. This forestry right was to expire in 2020. Kauapepe Forest clear-felled the site over the next four years. In anticipation of replanting, Mr Ferris discussed with landowner Peter Scott the possibility of extending the forestry right for twenty years beyond 2020; sufficient time for the next harvest cycle. The two agreed with a handshake, leaving it to lawyers to finalise the paper work.
The High Court was told Mr Scott was at that time finalising a relationship property settlement after separation from his then spouse. This resulted in land beneath the trees being transferred to a family trust. Mr Scott was no longer sole owner of the land; he became co-owner with fellow trustee Thomas Cowlishaw. As co-owners, both had to sign off on the forestry right extension. Mr Cowlishaw refused to sign. He first required an investigation into Kauapepe Forest’s financial stability, Mr Scott told the court.
Meanwhile, Kauapepe Forest had upgraded forestry roads, sprayed the logging slash with herbicide and replanted; Mr Ferris presuming all along that the paper work would be finalised. Lawyers acting for Mr Scott prepared the necessary forestry right extension, but Mr Cowlishaw refused to sign. Mr Scott told the High Court he was considering a court application to have Mr Cowlishaw removed as trustee of his family trust.
Frustrated at lack of progress, Kauapepe Forest sued. Justice Woolford awarded damages. Mr Scott had represented that an extension beyond 2020 would be formalised and Kauapepe Forest had incurred considerable expense relying on a promise that was not honoured. Damages of $162,000 were calculated on the current market value of the trees planted. This was some $17,500 greater than the replanting costs.
Kauapepe Forest Ltd v. Scott – High Court (27.05.21)
21.090