New Zealand's largest kiwifruit grower Seeka (NZX:SEK) has taken the position of second plaintiff representing the post-harvest class in the Kiwifruit Claim. 

The lawsuit was filed on Friday in Wellington's High Court and seeks damages from the Attorney-General - representing the Ministry of Primary Affairs (MPI) - for financial losses suffered due to alleged negligence over the Psa-V incursion.

Strathboss Kiwifruit is the first plaintiff and will represent growers taking part in the class action, which is being supported by litigation funder LPF.

Seeka chief executive Michael Franks said the company's independent legal opinion supported the view a strong case could be made confirming that MPI - formerly the Ministry of Agriculture and Fisheries - was negligent and failed in its duty of care.

The Psa-V incursion is said to have cost Seeka in excess of NZ$45 million (US$35 million), and led to it cutting permanent staff numbers by 40% in preparation for worst case scenarios.

"Seeka respects the right of every grower and post-harvest operator to fully consider their own circumstances and make their own decision in relation to this matter," Franks said in a statement.

In entering the claim, Seeka said it had noted industry concerns and had sought legal guidance to ensure the plaintiffs' funding agreement with LPF fully protected all those joining the claim against legal costs in the event of an adverse outcome.

Seeka chairman Fred Hutchings said that as a primary industry stakeholder, the company owed it to itself and industry counterparts to ensure border biosecurity controls were kept to the highest standards so that similar outbreaks were never repeated.

"Considering the financial and human impact of Psa-V on our people, our growers and our shareholders, we believe the issue should be considered and determined by the courts. Seeka believes in accountability," Hutchings said.

As a plaintiff, Seeka will appoint its own representative to the Kiwifruit Claim committee in due course.

"Seeka has a major ongoing commitment to research and development and has worked closely with industry groups and growers to deal with the damage caused by Psa-V," Franks said.

"While parts of our industry are in recovery, growers are still suffering its effects and many have incurred significant financial losses in addition to emotional and psychological stress.

"This claim is focused only on losses suffered by the kiwifruit industry participants and is not directed in any way at the single point of entry structure of the industry, which Seeka fully supports."

As of early October, growers representing around 20% of gold kiwifruit production had already signed up to the claim, along with 15% green kiwifruit growers.

For background on the Kiwifruit Claim, click here.

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