HARTONO AND OTHERS V MINISTRY FOR PRIMARY INDUSTRIES AND SAJO OYANG CORPORATION

[2018] NZSC 17, Supreme Court of New Zealand, Elias CJ, William Young, Glazebrook, O'Regan and Ellen France JJ, 2 March 2018

Admiralty - Wages - Forfeiture of vessel under Fisheries Act - Wages earned on sister ships - Fisheries Act 1996, section 256 - Admiralty Act 1973

Sajo Oyang Corporation of South Korea owned and operated the fishing vessels Oyang 70, Oyang 75 and Oyang 77. The vessels fished in New Zealand's EEZ under charter to Southern Storm Fishing (2007) Ltd, a New Zealand company. Oyang 70 sank on 18 August 2010 and Oyang 75 and Oyang 77 were later forfeited to the Crown as a result of convictions for offences against the Fisheries Act 1996. Southern Storm Fishing became insolvent. The forfeiture regime under the Fisheries Act provided for relief to be sought by those who could establish an "interest", as defined by section 256 of that Act, in forfeited property. 26 crew members filed applications for relief for unpaid wages in respect of the forfeiture of the two vessels. The claims were resisted to the extent that the wages were earned on other vessels or were founded on statutory liens in respect of which no proceedings had been issued before forfeiture, but were accepted insofar as they were based on maritime liens. The Fisheries Act provided that property forfeited to the Crown vested in the Crown absolutely and free of all encumbrances. Forfeit property could, among other options, be delivered to someone with a property interest therein, with or without directions as to payment of a sum of money, but this only applied to property interests.