More than five years out of time, Hawkes Bay’s Andrew Parkinson was refused permission to appeal an eight million dollar loss of profits claim against meat processor AFFCO, in part because Parkinson’s NZ Premium Trading Company Ltd has yet to pay AFFCO $77,600 previously ordered by the High Court.
Problems for exporter NZ Premium kicked off over a decade ago with China border controls disrupting meat imports from New Zealand.
One of AFFCO’s meat processing plants was ‘de-listed’ by Chinese authorities for a time.
Some of NZ Premium’s AFFCO product was held up at the border.
Its trade account with AFFCO was a mess, complicated by NZ Premium’s habit of making payments in lump sums with no reference to specific invoice numbers and its further habit of claiming credits without first waiting for AFFCO approval.
Unable to reconcile their trade account, both sides headed to the High Court making claims and counter claims.
End result: NZ Premium was ordered in 2018 to pay $97,900. AFFCO recovered part-payment from funds NZ Premium paid into court prior to trial, leaving $77,600 still outstanding.
NZ Premium signalled a planned appeal, but did nothing during the twenty working days allowed.
Over five years later, Mr Parkinson sought leave for his company NZ Premium to appeal out of time.
He claims an eight million dollar loss of profits claim was not properly considered at the 2018 trial. This claim turned on Mr Parkinson’s disputed claim that AFFCO had agreed to supply forty containers of product for a customer named as Shandong Taihua Food. AFFCO’s failure to deliver saw Shandong then cancel a proposed long-term contract, he claims.
Delays in bringing an appeal arose because of COVID-19 pandemic restrictions plus his need to get on and ‘make a living,’ generating funds to pay for an appeal, he said.
It was not in the interests of justice to allow an appeal out of time, the Court of Appeal ruled.
The delay was substantial. The $77,600 previously ordered by the High Court remained unpaid. And the likelihood of a successful appeal was weak, the court said.
NZ Premium Trading Co Ltd v. AFFCO New Zealand Ltd – Court of Appeal (5.02.26)
26.071