Aquaculture Corporation v New Zealand Green Mussel Co Ltd [1990]

Key Notes

The New Zealand Court of Appeal in this case approved the award of exemplary damages for a breach of fiduciary duty, reflecting a more pragmatic approach to the integration of equity and law. Lord Cooke expressed the view that equity and law are "mingled or merged," arguing that from a practical perspective, the full range of remedies should be available for breaches, irrespective of their origin in law or equity.

However, this approach contrasts with traditional views of keeping law and equity distinct. Section 25(11) of the Judicature Acts, which states that equity will prevail in cases of conflict between the two, suggests that the Acts did not intend a complete fusion. If such a fusion were the intention, the provision for resolving conflicts would have been unnecessary.

This case illustrates an evolving perspective in jurisdictions like New Zealand, favouring practicality over rigid adherence to historical divisions, while also prompting ongoing debate about the extent to which equity and law should converge.