Waikato rural delivery contractors Danielle and Ian Kennedy are suing NZ Post alleging their business is being devalued by what they claim is NZ Post’s improper use of its own courier service to make deliveries within their delivery area.
The High Court was told of other Waikato rural contractors joining with the Kennedys in threatening to suspend deliveries as a protest against alleged increased use by NZ Post of its in-house Courier Post service.
NZ Post contracts out rural deliveries, vetting route ownership changes and charging a fee when runs change hands. In 2019, the Te Awamutu-based Kennedys purchased NZ Post’s largest delivery run in the Hamilton/Waikato region; Tamahere RD3 rural run, taking ownership in their company’s name: Three Hills Group Ltd.
The High Court was told of a dispute quickly escalating between the Kennedys and NZ Post within six months. They took exception to Courier Post making deliveries within their designated area. They felt betrayed when NZ Post reallocated deliveries they otherwise would have made to major area clients on the outskirts of both Hamilton and Cambridge.
The Kennedys claim they were told by NZ Post prior to purchase of the run that they would enjoy exclusivity for deliveries in their area. They claim they would have never purchased if made aware there could be inroads on the volume of work. NZ Post say their rural delivery contract is clear; NZ Post reserves the right to make changes.
Mediation between the Kennedys and NZ Post in late 2022 came to nothing. NZ Post subsequently gave notice of its intention to terminate the Kennedys’ contract.
The Kennedys asked the High Court to block any termination, pending a later court hearing on both their claimed right to exclusivity for deliveries in their area and the validity of NZ Post’s termination. Terminating their contract would result in an immediate loss of substantial goodwill paid on purchase of the run, they said.
Justice Gault refused to intervene. A full trial is needed to establish validity of the Kennedys’ claims, he ruled. NZ Post can pay damages if found to have acted incorrectly.
Three Hills Group Ltd v. NZ Post Ltd – High Court (9.11.23)
24.007