2 May 2016

NZX and Ralec trial gets underway

12:56 pm on 2 May 2016

The long, dragged-out legal battle between the sharemarket operator, NZX, and the Melbourne-based grain exchange operator, Ralec Commodities, resumes in the High Court in Wellington today.

NZX in Auckland.

Photo: 123RF

The two parties have been in the courts since 2011 over the performance of a grain exchange which the NZX bought from Ralec in 2009.

The NZX has claimed that the grain exchange, which it bought for $6.4 million, failed to deliver on expectations.

Ralec has counter-claimed that NZX deprived it of income and that the former NZX chief executive, Mark Weldon, breached the Fair Trading Act with misrepresentations and other breach of duty claims.

Mark Weldon

Mark Weldon Photo: Creative Commons

In earlier hearings on procedural issues both parties have been criticised for trying to score points on orders, rather than focusing on substantive issues, and at the end of last year Justice Robert Dobson said the two sides had engaged in "regrettable initiatives" that had distracted from the main issues.

NZX's claim has now ballooned to at least $AU20.7m and Ralec's counter claims are worth around $AU19m.

The case is expected to take up to nine weeks.

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