The Crown is trying to exclude spy agency, the GCSB, from Kim Dotcom’s bid to win damages over illegal spying and the raid on his Coatesville mansion.
The internet tycoon had been given the green light to take action against the police and the GCSB by Helen Justice Winkelmann last year.
The Crown is now appealing.
Crown lawyer David Boldt says it raises national security issues.
“What they have asked for, in spite of the admission of liability, is comprehensive disclosure of material that may well raise security issues and may well need to be scrutinised, indeed I can say almost certainly will need to be scrutinised.”
Dotcom’s lawyer William Akel argues the GCSB has to be included in the interests of justice.