A legal setback for French Polynesia: The Paris Administrative Court of Appeal has ordered the government to pay 30 million Fcfp (French Pacific francs) to the company Raipoe International following the destruction of over 120,000 low-grade pearls in March 2017.
At the time, the destruction was justified under a 2005 resolution prohibiting the sale and export of pearls deemed imperfect. However, the court ruled that this regulatory basis was “entirely lacking legal foundation” on this matter.
The court determined that the government had no right to seize and destroy goods belonging to a private company, thereby violating its property rights.
Initially, Raipoe International had sought 86 million Fcfp in damages. The court ultimately awarded 30 million, taking into account a key factor: the enactment, just months later, of a new law legalizing the sale of such pearls. This legislative change caused market prices to drop, thereby limiting the financial harm suffered.
The ruling highlights a paradoxical situation: The government has been penalized for acting on an illegal regulation, while subsequent legalization of pearl sales ultimately mitigated the economic consequences.
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