The High Court has awarded Emerald Meats Limited €2.45 million in general damages over losses caused by the delayed allocation of GATT meat quota in 1990.
Mr Justice Feeney delivered the damages judgment on 8 October 2007. The Supreme Court had already held that Emerald Meats was the importer of GATT meat in 1987 and 1988, and that the Minister for Agriculture breached a duty by failing to forward the company’s application to the European Commission. The Supreme Court remitted the assessment of general damages to the High Court.
Emerald Meats should have received 294 tonnes of quota in February 1990. It received 116.5 tonnes during that year, with the remaining 177 tonnes delayed until July 1992. The court had previously awarded special damages. The issue in this hearing was the additional general damages arising from the delay and its effects on the company’s trading, reputation and business confidence.
The court found, on the balance of probabilities, that the wrongful act and the circumstances surrounding it effectively caused the company to cease ordinary trading from 1990. It found that the delay deprived Emerald Meats of a valuable asset and cash flow just as a major change in the European quota system required it to build new trading activity. Litigation also diverted management time and resources, while financial uncertainty and damage to the company’s reputation hindered its ability to trade.
The judge rejected both methods proposed by Emerald Meats’ expert to calculate lost profits. They relied too heavily on the company’s pre-1990 quota share and on growth achieved by a related London company, despite the changed market and the differences between the businesses. The court nevertheless concluded that Emerald Meats had suffered real loss and was entitled to general damages.
To estimate that loss, the court used another meat trader, NWL, as the most realistic available comparator for turnover in the post-1990 market. It assessed the company’s likely net profit margin at 3%, producing estimated lost profits of IR£1,578,000, or €2,003,646.60, through June 2001. It then added €446,353.40 to account approximately for inflation and the reduced value of money by October 2007.
The court also rejected the Minister’s mitigation argument, finding that it did not arise in light of the damage to the company’s capacity to trade. It awarded €2.45 million in general damages. The judgment assessed general damages only; the earlier special-damages award was separate.