Amaltal loses appeal, but has damages cut to $4.92m

The Court of Appeal has ruled in favour of a Japanese fishing company in a multimillion-dollar "bare knuckles" legal fight with New Zealand firm Amaltal with which it operated a joint venture for some years from 1985.

Amaltal Corporation failed to have a High Court judgment by Justice John Priestley of October 2004 overturned.

The court said in its reserved judgment that findings of commercial dishonesty always produced the legal equivalent of a bare-knuckled fist fight.

The Appeal Court case, heard over four days in late March, involved a claim by Maruha that it had been "cheated" out of more than $6 million in New Zealand tax savings by Amaltal.

The Appeal Court, comprising Justices Grant Hammond, Mark O'Regan and Bruce Robertson, noted that Justice Priestley had said that Amaltal had acted inappropriately in its dealings with Maruha.

It said that the judge found "in the simplest terms" that Amaltal had acted "dishonestly" and in breach of its obligations, that Maruha had suffered extensive loss and that the Japanese company's action against Amaltal was not time-barred as Amaltal claimed.

The judge was also "substantially correct about the damages he awarded but certain adjustments needed to be made" - thus reducing damages from $6.12 million to $4.92 million.

- NZPA