The High Court awarded a total of €400,000 to two mussel businesses after finding the State negligent in its handling of mussel-seed fishing at Castlemaine Harbour, Cromane, in 2008 and 2010.
Hanna J held that the companies had a legitimate expectation that the fishery would reopen annually in the usual way, subject to lawful environmental protection. The court found that the State had failed to gather scientific information and conduct assessments in time to manage the protected harbour while allowing the businesses to continue seed collection where appropriate.
The plaintiffs, Cromane Seafoods Limited and O'Sullivan McCarthy Mussel Development Limited, said delays in opening the fishery left mussel seed vulnerable to starfish and green crabs. They claimed lost stock and consequential business losses. The State argued that European environmental obligations required assessment before fishing could resume, that the closures were lawful, and that the first company’s losses were too remote.
The judgment records that the harbour remained closed until 5 October 2008, by which time predators had consumed mussels. In 2010, the fishery reopened on 30 August. The court found that the State could have assembled the information needed for an appropriate assessment sooner and that the risk of predator damage was foreseeable. It accepted the evidence of the plaintiffs’ marine scientist that an assessment could have been completed within about two months.
The court found the State negligent and held that both companies were entitled to damages despite their separate corporate identities. It did not decide every claim pleaded: the judge said it was unnecessary to consider the plaintiffs’ other grounds, including negligent misstatement and alleged breaches of constitutional rights.
In assessing loss, the judge preferred the plaintiffs’ accountant’s figures as a starting point but allowed for market effects, accounting treatment and other factors. The court awarded €125,000 to Cromane Seafoods Limited and €275,000 to O'Sullivan McCarthy Mussel Development Limited. The judgment does not state a separate order on costs in the supplied text.