BI Covid-19 test case decision released

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BI Covid-19 test case decision released

As regular readers know, Fee Langstone has been providing updates on the UK “test case” on the Business Interruption response to Covid-19 claims as the case has proceeded through the Court.

To recap, the United Kingdom Financial Conduct Authority (FCA) had brought the Covid-19 “test case” with the aim of bringing clarity to areas of uncertainty for as many policyholders and insurers as possible. A sample of twenty-one policy wordings issued by eight insurers was considered, with the FCA putting forward policyholders’ arguments in the public interest.

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$7.5m in penalties for serious anti-money laundering breach

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$7.5m in penalties for serious anti-money laundering breach

Dept of Internal Affairs v OTT Trading Group Ltd [2020] NZHC 1663

In this decision, the Department of Internal Affairs (the Department) claimed that between May 2014 and April 2019, OTT Trading Group (OTT) and MSI Group Limited (MSI) breached their obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act).

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First workplace manslaughter in Australia

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First workplace manslaughter in Australia

R v Brisbane Auto Recycling Pty Ltd & Ors [2020] QDC 113

In our February 2020 issue of In Brief, we discussed how two further Australian jurisdictions (Victoria and the Northern Territory) had passed workplace manslaughter laws. Now, Australia has had its first workplace manslaughter sentence. The sentence was imposed in Queensland, pursuant to workplace manslaughter laws, which have been in force since 2017 following an amendment to Queensland’s Workplace Health and Safety Act 2011.

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Crown immune from liability for Psa outbreak

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Crown immune from liability for Psa outbreak

Attorney-General v Strathboss Kiwifruit Limited [2020] NZCA 98
In this recent decision, the Court of Appeal found that the Crown was immune from liability to kiwifruit growers and post-harvest operators in negligence for granting an import permit for a consignment of kiwifruit pollen from China and for not inspecting those goods when they arrived in New Zealand. Further, even if the immunity had not been made out, the Court found no duty of care in any event.

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Clarifying fiduciary obligations in a joint venture arrangement

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Clarifying fiduciary obligations in a joint venture arrangement

Daisley v Ark Contractors Limited [2020] NZHC 793

Fee Langstone was recently involved in a High Court trial which has shed light on the fiduciary duty that arises from a joint venture arrangement. It also usefully affirms the requirement that there be a contract of retainer or assumption of responsibility to a party involved in a transaction before a lawyer will owe fiduciary duties to that party.

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Covid-19 Test Case to Proceed Urgently

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Covid-19 Test Case to Proceed Urgently

UK Financial Conduct Authority to bring COVID-19 test case for business interruption claims
The COVID-19 pandemic has been a hugely significant worldwide event. The pandemic and subsequent government controls have caused many businesses – in particular SMEs – distress and substantial losses. Most claims for COVID-19-related business interruption (BI) losses have been excluded in New Zealand because BI policies here generally do not cover losses resulting from pandemics. This is not always the case in other parts of the world.

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The Final Word on Detention and Demurrage in the United States?

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The Final Word on Detention and Demurrage in the United States?

The Federal Maritime Commission recently released its final interpretive rule concerning the reasonableness of detention and demurrage charges. The FMC’s announcement is a response to complaints of shippers, freight intermediaries and truckers of being penalised with unreasonable demurrage and detention charges by ocean carriers and terminal operators.

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The end of the road in the real estate price-fixing saga

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The end of the road in the real estate price-fixing saga

Lodge Real Estate Limited v Commerce Commission [2020] NZSC 25

The Supreme Court has recently delivered its judgment in the Trade Me/real estate agents price-fixing case, making this the final episode (on liability at least). Two Hamilton real estate agencies lost their seven-year battle against price-fixing allegations by the Commerce Commission.

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Deceitful practices lands Canterbury wine company $1.7m fine

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Deceitful practices lands Canterbury wine company $1.7m fine

R v Southern Boundary Wines Ltd (in liq) [2020] NZHC 514

Two directors and an employee of Southern Boundary Wines Ltd (Southern Boundary) have been sentenced along with the company itself for charges under the Wine Act 2003 involving deception and selling and exporting non-compliant wines. This is the third sentencing to occur under the Act.

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Fishing vessel sinking leads to the first conviction of an officer in New Zealand

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Fishing vessel sinking leads to the first conviction of an officer in New Zealand

In June 2017, a fishing vessel, the Victory II, sank off Kaikōura while grossly overloaded with fish. In a prosecution brought by Maritime New Zealand, Antonio Basile, the sole director of the fishing company, Nino’s Ltd, became the first officer to be convicted and sentenced under the Health and Safety at Work Act 2015 (HSWA). Nino’s Ltd was also sentenced, as was the Victory II’s skipper, Mr McCauley.

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Police bring first forfeiture action against health and safety offender

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Police bring first forfeiture action against health and safety offender

WorkSafe NZ v Salter [2017] NZDC 26277

In 2017, Auckland business owner, Ron Salter, and his waste fuel collection business, Salters Cartage Ltd (Salters), were convicted for a series of breaches of the Health and Safety in Employment Act 1992 and the Hazardous Substances and New Organisms Act 1996.  The Police are now commencing proceedings against Mr Salter under the Criminal Proceeds (Recovery) Act 2009 (Act).  This is the first time a proceeding has been brought under this Act in relation to a health and safety offending. 

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Reparations and the Resource Management Act

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Reparations and the Resource Management Act

GDC v Aratu Forestry Ltd

This recent sentencing decision is notable for two reasons. First, because of the large fine imposed on a forestry company for breaching the Resource Management Act 1993 (RMA), and second  – perhaps more interestingly – because the Court ordered the defendants to pay a significant sum in reparations to affected persons for emotional harm.  While reparation payments are common for other kinds of offences, they are uncommon for convictions under the RMA. The case also raises issues such as whether a defendant is insured for reparation payments, and, if so, which insurance policy will provide cover?

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Court clarifies limitation period for fiduciary claims

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Court clarifies limitation period for fiduciary claims

George v Sell Smart Bis Ltd [2019] NZHC 37

Recently, the High Court decided that a claim for breach of fiduciary duty against a mortgage broker was barred under the Limitation Act 1950 (the Act). The Court applied by analogy the limitation period that applies to contractual/tortious claims. This decision is very important in clarifying the time limit which will apply to claims for breach of fiduciary duty, such as acting in a conflict of interest or failing to act honestly in the client’s interests.

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Workplace manslaughter is rolled out further in Australia:  Is New Zealand next?

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Workplace manslaughter is rolled out further in Australia:  Is New Zealand next?

Workplace manslaughter (also referred to as industrial/corporate manslaughter) has been an offence in the United Kingdom since 2008. Closer to home, Victoria and the Northern Territory have joined the Australian Capital Territory (ACT) and Queensland as the latest Australian jurisdictions to pass workplace manslaughter laws.

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