Similar claims, different outcomes. Unpaid honey suppliers were fended off by Stephen Brown’s Springbank Honey with comments that their honey was below standard; suppliers argued their product had deteriorated because of Springbank’s poor processing and transportation. Of multiple unpaid suppliers, Bay of Plenty’s Dale Gifford got a High Court order for payment of $484,700; an order of little substance since Springbank is now in receivership.
Springbank Honey Ltd operated out of Cust in North Canterbury; processing honey for sale.
The High Court was told Mr Gifford supplied honey to Springbank in May 2024, with payment promised by instalments.
With $484,700 remaining unpaid, he applied to have Springbank liquidated on grounds of presumed insolvency – a common legal tactic used to force payment of company debts.
Three months previously, another unpaid supplier had tried a similar tactic.
Northland supplier Hillside Honey Ltd was chasing $587,500 unpaid.
Hillside’s claim was put on hold; Associate Judge Cogswell ruling there was a live dispute as to who was to blame for the allegedly poor quality of Hillside’s Honey.
The commercially critical component of manuka honey is levels of hydroxymethylfurfural (HMF). The lower the better. HMF increases naturally over time. Levels can be affected by heat and transport.
Judge Cogswell told Hillside further evidence is needed as to whether high HMF levels were the fault of Hillside or Springbank.
When Mr Gifford sued months later, Springbank put up the same argument, seeking to have this second court action also put on hold.
This time round, Associate Judge Brittain took a harder line, ruling Springbank had failed to provide any evidence that Mr Gifford’s honey was above contracted HMF levels at the time it was delivered.
Requests by Mr Gifford’s lawyers for relevant reliable evidence were ignored.
Tests supposedly done after his honey was blended with honey from other suppliers were not evidence of the HMF levels of Mr Gifford’s honey at time of delivery eight months earlier, lawyers said.
Springbank Honey was ordered to pay Mr Gifford the $484,700 still due, or face liquidation in three weeks.
Within days of that deadline, Bank of New Zealand appointed receivers. They have taken control of all Springbank Honey’s assets.
Springbank Honey Ltd v. Gifford – High Court (10.06.26)
26.172