ComCom compo claim against Carter Holt Harvey allowed

The Commerce Commission can now proceed with a compensation claim against Carter Holt Harvey after the Supreme Court judgment issued today overturned an earlier Court of Appeal decision.

The Court of Appeal had ruled that the commission had filed the proceedings against the company outside the limitation period allowed by the Fair Trading Act.

In October 2006 Carter Holt Harvey pleaded guilty to 20 charges of breaching the Fair Trading Act 1986 by selling timber that did not meet the grade claimed on packaging and was fined $900,000.

During that same month the Commerce Commission also filed civil proceedings against the company seeking compensation for consumers and competitors who suffered a loss due to the mislabelling.

Carter Holt Harvey applied to have the claim struck off on the basis it was filed outside the statutory limitation period.

The case yo-yoed with the commission successfully opposing the application in the High Court before the Court of Appeal came down in Carter Holt Harvey’s favour.

The commission said it was pleased with the outcome and would now re-start the process of identifying those who paid more than they should have for the mislabelled timber.

It estimates there could be up to 60,000 houses and other buildings involved.

The mis-graded timber was sold between May 1998 and October 2003.