A High Court ruling has reopened the door for Scott Forestry in litigation over the Port Hills fires. The company, deregistered in 2022, successfully argued that its exclusion from IAG’s lawsuit stemmed from a technicality related to its corporate status.
Fire Incident Triggers Ongoing Multi-Party Legal Action
The lawsuit stems from the Port Hills fires, which ignited in February 2017 and tore through more than 2000 hectares of land. The inferno destroyed nine homes and significantly damaged another two properties, leaving a lasting impact on the Christchurch community.
IAG filed a High Court claim against electricity provider Orion and Christchurch Adventure Park in response, seeking damages on behalf of a dozen affected property owners. Scott Forestry was among the original parties to the suit, until a procedural challenge forced its removal.
Deregistration Leads to Legal Disqualification
Scott Forestry’s legal standing was called into question after court documents revealed that it had ceased trading in November 2020 and was officially removed from the Companies Register in November 2022. The delisting came after the company failed to file its annual returns.
Orion applied orally to have the company struck out of the proceedings during a teleconference in December 2023. A week later, a judge granted the application, stating, “Because it was not on the register when this proceeding was filed, but there having been a failure to take reasonable steps to restore the company to the Register, it is now… formally struck out.”
The judge went further, asserting that Scott Forestry “technically has never been a party to the proceeding.”
Company Restoration Supports Renewed Legal Standing
Scott Forestry moved to have its status reinstated despite being removed from the case. The company was re-entered into the Companies Register and immediately sought to reassert its legal rights in the lawsuit in 2024.
The company claimed it “was always party to the proceedings for the purposes of bringing a claim” in its submission. That argument found support in the latest ruling, with Justice Palmer concluding that Scott Forestry can appeal its exclusion from the case.
Court Ruling Highlights Legal Risk in Compliance Lapses
Justice Palmer’s decision opens the door for the company to potentially rejoin the multi-party lawsuit, which continues to examine liability for one of New Zealand’s most destructive wildfires in recent memory. The ruling also emphasises the legal risks businesses face when administrative details—such as filing returns—are neglected, especially in the context of ongoing litigation.
Scott Forestry’s appeal sets the stage for renewed legal action in the High Court. The case, which aims to clarify accountability and compensation linked to the Port Hills disaster, continues to unfold.