Coroner & Legal
Gunns a loser
Extract:
TASMANIAN timber giant Gunns Ltd yesterday lost a bid to terminate a contract because of a collapse in the market for low-quality woodchips.
Gunns went to the Tasmanian Supreme Court to appeal against an arbitrator’s decision that it was not entitled to break its contract with timber harvester N.D. Jackman Pty Ltd.
Yesterday Chief Justice Peter Underwood upheld the arbitrator’s decision saying there was no manifest error or strong evidence of error by him.
Outside court Noel Jackman, of N.D. Jackman, said the court’s decison was the right one.
His lawyer, Michael Crisp, said the judgment backed the arbitrator’s finding that Gunns could not break its contract with N.D. Jackman because of the changed financial circumstances it found itself in.