Almas claims that Select Harvests failed to properly perform its obligations regarding orchard management services provided by Select Harvests for Almas Almonds’ orchards at Bannerton and Boundary Bend East.

The claims centre around the installation of an irrigation system at the time the orchards were established in 2006 and on the damage of almond trees during the harvesting process.

The Supreme Court of Victoria will conduct an initial directions hearing on Friday, May 16.

Select Harvests said in a statement to the ASX that it “denies any liability” and “intends to vigorously defend the claim”.

Almas Almonds directors and majority shareholders Max Fremder and Curt Leonard are both former directors of Select Harvests.

Mr Fremder was chairman of Select from 1996 to 2008 and Mr Leonard was a director from 2004 to 2012.

“Each of Max Fremder and Curt Leonard were directors of Select Harvests during substantially all of the period of the Almond Orchard Management Agreement, the subject of the Almas Almonds claim including the establishment of two orchards,” Select Harvests said on Thursday.

The damages claim totals approximately $9,010,879 plus interest and costs, of which approximately $8,262,764 relates to claimed future loss of income from 2014-2029.

Select Harvests has a market value of around $360 million and its shares have soared 110 per cent in the past 12 months as a global supply shortage of almonds and robust demand has driven up almond prices.

Select Harvests said at its half-year result in February that it was “in a dispute” with Almas but could not quantify any potential obligation given the lack of formal proceedings.

The company reported a first half net profit of $18.4 million compared to a net loss of $19.5 million in the year prior period.

Select Harvests shares were down 17¢ to $6.18 in early trade on Thursday.