#Fonterra compensation likely

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Fonterra will offer compensation to the companies it supplied with potentially contaminated whey protein concentrate, a commercial lawyer says.


The lawyer, who could not be named for commercial reasons, said Fonterra would «make right» by the eight companies it had supplied with the product.
Fonterra would give compensation freely and it was unlikely companies would sue Fonterra for compensation, he said, adding the only way a lawsuit would come about was if there was a case of personal injury.
«Recalls happen all over the world, all the time,» he said.
University of Auckland commercial law professor Dr Chris Noonan said companies sold the product would return the recalled products to Fonterra and get a refund.
Eight companies were supplied with the potentially contaminated product, and New Zealand supermarkets were recalling two types of infant formula.
Nutricia is recalling all batches of Karicare Infant Formula Stage 1 (0-6 months) and Gold Plus Follow On Stage 2 (6-12 months).
The formula may contain whey powder that could be contaminated with bacteria linked to botulism, a disease that can cause paralysis and death.
Nutricia would not comment yesterday on whether it would be seeking compensation from Fonterra.
Noonan said that while there were no reports of sickness from the contaminated product, difficulty would arise if someone became ill.
ACC law prevented people in New Zealand from suing Fonterra if they became sick, but if someone in another country became sick from the contaminated products they could sue the company, depending on the law of their country, he said.
In 2010 Hong Kong’s Small Claims Tribunal rejected a compensation bid four Chinese mainland parents mounted against a Fonterra-part-owned Chinese company after their children were poisoned in the melamine milkpowder scandal in 2008.
The four had sought about HK$84,000 (NZ$13,845) from the Hong Kong-based Fonterra Brands, which was a 43 per cent shareholder of the Sanlu joint venture on the mainland.
The parents had argued that Fonterra should shoulder some responsibility.
 
Source: Stuff

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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