New Zealand Case Law: Decisions & Judgments

Topic

Regulatory pricing

Legal area

Court

22 Feb 2008

AIR NELSON LIMITED V THE MINISTER OF TRANSPORT AND ANOR CA CA279/06

Citation

openlaw-b3f060a7_c7a0_493b_af6e_d56c1a4ebcd9.pdf
Court

Court of Appeal

The Ministerial decisions to increase landing charges were statutory public law acts subject to judicial review; the Pfiffner paper advising the second Minister did not provide a fair, accurate and adequate account of Air Nelson's objections (including the Q300 fleet impact) and material flaws in the prior process, so the Minister failed to take into account relevant considerations; accordingly both challenged determinations (7 Dec 2004 and 17 Nov 2005) were quashed and the appeal allowed.
30 May 2007

COMMERCE COMMISSION V FONTERRA CO-OPERATIVE GROUP LIMITED SC 39/2006

Citation

COMMERCE COMMISSION V FONTERRA CO-OPERATIVE GROUP LIMITED SC 39/2006
Court

Supreme Court

Reg 9(1) of the Raw Milk Regulations requires the discount rate for calculating annualised share value to be the cost of Fonterra's equity capital (cost of equity), not the weighted average cost of capital; regs 9(1) and 9(2) must be read consistently and the discount must relate to the return on shareholders' equity, because annualised share value is a perpetuity representing return on equity.
4 May 2006

CC V FONTERRA CO-OP GROUP LTD CA CA175/05

Citation

openlaw-244749cd_e8c7_45e2_88f2_fab4176afb90.pdf
Court

Court of Appeal

The Court held that reg 9(1) must be read to require the discount rate to be the same as the 'cost of capital rate' actually used to calculate the co-operative share price (which may be a WACC as used by the independent valuer), so the Commission's challenge on that point failed; however the Court allowed the Commission's appeal on the retention issue, holding that for calculating the wholesale milk price in a season 'total payout' means the total payout from profits in that season and does not include payments to supplier shareholders out of reserves.

New Zealand Case Law

AIR NELSON LIMITED V THE MINISTER OF TRANSPORT AND ANOR CA CA279/06

COMMERCE COMMISSION V FONTERRA CO-OPERATIVE GROUP LIMITED SC 39/2006

CC V FONTERRA CO-OP GROUP LTD CA CA175/05