Logging contractor fined for breach of Northland contract

Kevin Judkins with land in the background where a logging subcontractor failed to harvest all the standing pine. Photo / John Stone

A logging contractor taken to the Disputes Tribunal by a Northland family trust has been ordered to pay nearly $18,000 for breach of contract over the harvest of mature pine trees.

Kevin and Anne Judkins, trading as the Judkins Family Trust, took Feilding-based Forest 360 to the tribunal after trees felled on their Hikurangi property were not recovered and marketed until four months later.

At the end of four months, the logs could only be used for firewood as their quality deteriorated due to sap and beetle infestation.

The Judkins entered into an agreement with Forest Owner Marketing Services (FOMS), now trading as Forest 360, in October 2017 and the company undertook to manage all aspects of harvest and marketing of standing trees on 40 hectares of their land on Tahiwi Rd in Hikurangi.

However, subcontractor Bootz Logging abandoned its contract with Forest 360 after cutting down just 3ha of trees in November and December 2018 without recovering them.

The deteriorating logs were eventually picked up by Forest 360's replacement subcontractor Woodlot Logging in April 2019.

The Judkins Family Trust initially claimed $15,000 but enlarged that to $30,000 to cover their loss that resulted from the deteriorating quality of their logs.

Unrecovered logs on the Judkins' farm in Hikurangi that deteriorated to such an extent they could only be used as firewood. Photo / Supplied

In the tribunal, Forest 360 managing director Dan Gaddum accepted the logs were only suitable for firewood but denied his company was liable for any loss.

But the tribunal was satisfied Forest 360 was in breach of the contract by failing to harvest nearly 470 tonnes of logs in a timely manner and in accordance with the agreement.

However, it ruled Forest 360 was not liable to compensate the Judkins for 44 tonnes of unharvested trees as both parties agreed it would not be economical to fell them.

The tribunal ordered Forest 360 to pay the trust $17,872 for the loss of value of their harvested trees.

Kevin Judkins said the win was a milestone for small forest owners who have been unjustly treated by harvest operators who were not above the law.

"I hope that my win will give them the Me too confidence to take on these companies in court, as I have done.

"The Disputes Tribunal is the perfect forum to do this, as its findings are legally enforceable and there are no non-disclosure clauses, no confidentiality clauses and no suppression orders attached," he said.

Gaddum said his company would not appeal the tribunal's decision.

However, he disagreed with the tribunal's finding that Forest 360 was in breach of the contract, saying a lot of extenuating circumstances were at play.