A helicopter firm will be able to sue a South African company for nearly $900,000 in New Zealand courts after a High Court ruling.
Heli Holdings Ltd claims it is owed $US598,131 (NZ$888,816) by Chopper Worx Pty Ltd for repairs and unpaid lease payments relating to a helicopter it leased to the company, in Pretoria, in 2015-16.
The lease was negotiated from the Heli Holdings' Queenstown office.
The company, a wholly owned subsidiary of Auckland's Airworks NZ, delivered the helicopter from Germany to South Africa and supplied it to Chopper Worx Pty Ltd in March 2015.
But, court documents state, by June 2016 the two engines were so badly damaged they needed to be shipped to New Zealand for repairs.
"The engines were rated for 1800 hours of flight time from the beginning of the lease, but they had only been used for approximately 460 hours. In their damaged condition, they had no flight time left."
Heli Holdings contends the damage was caused by Chopper's operation of the aircraft.
Chopper's sole director Deon Rossouw claims it was because Heli Holdings failed to fit an engine filter required to deal with African weather conditions, as had been negotiated.
Heli Holding also alleges Chopper failed to pay its share of repairs to a damaged skid and borescope and failed to make two monthly lease payments in full, owing $38,750 for January 2016, and $35,564 for July 2016.
It has filed a claim in New Zealand.
Chopper lawyers filed a protest to the New Zealand jurisdiction, but no statement of defence has been filed.
They pointed to a line in the lease contract which states both parties submit to "the non-exclusive jurisdiction of the New Zealand courts" and argue the case should be heard in South Africa.
They said it would be cheaper, there are eight witnesses in South Africa, Heli Holdings has a clear connection to South Africa through a subsidiary but Chopper has no connection to New Zealand, the day-to-day operations took place in South Africa, the damage occurred there and the replacement parts were from stock held there.
Heli Holdings lawyers point to the next line in the contract stating both parties agree "any legal action . . . may be brought in New Zealand".
They argue the lease is governed by New Zealand law and was breached in New Zealand by non-payment into bank accounts here. It would call six witnesses.
High Court Associate Judge Warwick Smith, in his December 12 judgement, determined the contract was clear that legal action can be brought in New Zealand.
The factors raised by Chopper did not constitute the "exceptional circumstances" needed to deny Heli Holdings the right to sue under the lease in New Zealand.
He set aside Chopper's protest over jurisdiction and ordered it to file and serve its statement of defence within 30 working days.
