Hayley Young has been fighting for accountability after she claims she was attacked while working for the New Zealand Navy.

Hayley Young, a former naval officer who alleges she was raped and sexually harassed while on deployment in Britain, has lost her appeal to have a part of her court case heard in New Zealand.

For several years, Young has been trying to take legal action against the New Zealand and British governments for not providing a safe work environment after she claims she was raped while on deployment.

The alleged attack took place in 2009 after she claims she suffered months of sexual harassment and abuse by male colleagues – including male staff members betting buckets of KFC on which female officers could be sexually "conquered".

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The man who allegedly raped her was working for the British Navy. Young decided not to take legal action against him and instead decided to challenge the culture that enabled him, she said.

New Zealand's Attorney-General and the British Ministry of Defence wanted her case heard in Britain, where the alleged rape took place. But her lawyer told the High Court last year she couldn't afford to pursue the case there.

SUPPLIED Young pictured during her time in the Navy.

In a decision released last year, Justice Simon France rejected the attorney-general's argument, ruling the case could be heard in New Zealand.

However, he also ruled the allegations levelled at the British Government could not be dealt with in New Zealand. It was that decision against which Young was appealing.

On Monday, the Court of Appeal ruled in favour of Justice France's decision.

However, Young said the judgement clarified her case against the New Zealand Defence Force.

"Overall it's really positive. I'm thrilled. Part of it is a landmark finding that the New Zealand Bill of Rights Act applies to all New Zealand operations abroad.

"The overall effect is that it strengthens my case against the New Zealand Defence Force. It reinforces the New Zealand Defence Force's duties to protect the human rights of our service people when serving abroad."

"Now we are preparing for the trial against the New Zealand Defence Force with renewed vigour given they have been denying these duties exist to date."

Young was ordered to pay legal costs.