title: Rolls-Royce New Zealand Ltd v Carter Holt Harvey Ltd
text: # Rolls-Royce New Zealand Ltd v Carter Holt Harvey Ltd
  
  Rolls-Royce New Zealand Ltd v Carter Holt Harvey Ltd [2005] 1 NZLR 324 is decision of the Court of Appeal of New Zealand regarding tort claims in situations where a claim can be in both tort and contract.
  
  ## Background
  
  Carter Holt entered into a contract with ECNZ (now Genesis Energy) for them to construct a cogeneration plant at their Kinleith paper mill that would be fueled by waste byproduct from the mill, with the contract having a non liability clause.
  
  ECNZ in turn subcontracted the work to Rolls-Royce.
  
  Problems later were experienced with the generators that were installed, and CHH sued ECNZ for breach of contract. As there was no contract between CHH and Rolls-Royce, they were sued for negligence in tort.
  
  Rolls-Royce applied for the tort claim against them to be struck out on the basis that ECNZ could not have a claim in both contract and tort.
  
  ## Held
  
  The court ruled where parties are involved in complex commercial relationships, there could only be duties owed in contract, and not in tort. Accordingly, the court granted Rolls-Royces application to strike out part of the claim.
  
  However, the court did leave open to a claim in tort still being arguable for misrepresentation claims in tort, as per in Hedley Byrne.
  
  