A lawyer for Fonterra has told the Court of Appeal the company's handling of last year's botulism scare will be fully covered in an arbitration hearing with the French food company Danone.
Danone's products include the Karicare formula range for infants and toddlers. Photo: RNZ
In Julty the High Court ruled Danone and Fonterra should attend arbitration in Singapore before any court case takes place, as that was the arrangement between the companies under their supply agreement for whey powder.
However, Danone's lawyer told the court today that arbitration is unlikely to happen until early 2016, which would push any High Court damages case out to 2018.
Fonterra's lawyer said Danone wants to continue the High Court case so it could avoid the damages limit set out in the companies' supply agreement.
The court has reserved its decision.
