A $15 million lawsuit against Cabinet Minister Nick Smith has been settled out of court but the parties say the terms are confidential.A six-week hearing was due to start in the High Court at Auckland yesterday but was delayed as the parties continued tal
A $15 million lawsuit against Cabinet Minister Nick Smith has been settled out of court but the parties say the terms are confidential.
A six-week hearing was due to start in the High Court at Auckland yesterday but was delayed as the parties continued talks.
Timber preservatives producer Osmose New Zealand alleged the Nelson MP and timber preservation scientist Robin Wakeling defamed it.
Osmose New Zealand, a division of a US-based wood preservation corporation, alleged that statements made in July 2005 about the company's surface-treated timber product, T1.2, destroyed the product's reputation and the company lost more than $14 million in projected profit.
Counsel for the parties appeared in the High Court today to announce an agreement had been reached.
It was revealed in April that Parliamentary Services had contributed $122,000 towards the then total of $270,000 in costs faced by Dr Smith.
Prime Minister John Key said Dr Smith had acted in what he thought was the best interest of New Zealanders and the use of taxpayer funds was "totally legitimate".
Dr Smith has also received support from a trust set up in 2006 to help him and Dr Wakeling defend the lawsuit.
However, he is no longer a beneficiary of the trust and has met more than half of the cost himself. Since returning to Cabinet his salary has risen from $131,000 to $243,000.
