Adler Mallach Holdings Pty Limited v Robertson

Adler Mallach Holdings Pty Limited brought an action against Robertson in the Supreme Court of New South Wales, seeking damages for losses incurred due to Robertson's breach of contract. The primary contention was the amount of damages Robertson owed for the alleged breach, specifically focusing on the calculation of lost profits. Adler Mallach Holdings argued that Robertson's actions provided him an unfair advantage in the market, which unfairly enhanced his profits. The court was required to determine whether such a "springboard" or "headstart" effect could be quantified and if it constituted a legitimate basis for increased damages.

The central legal issue was whether the court should order an inquiry by a Master to assess the fairness of the lost profit calculation, particularly concerning the "springboard" effect. Adler Mallach Holdings argued that without such an inquiry, there was a risk of Robertson receiving an unfair advantage from his early entry into the market. Robertson contended that the standard principles of lost profit calculation were sufficient and that any perceived advantage was merely a consequence of normal business competition. The court needed to decide whether the evidence presented by Adler Mallach Holdings was sufficient to warrant a Master's inquiry into the fairness of the profit assessment.

In its decision, the court held that the evidence provided by Adler Mallach Holdings was not sufficient to establish that the lost profit calculation was unfair due to a "springboard" effect. The court found that the standard principles of lost profit calculation were adequate to address the situation without the need for a Master's inquiry. The court reasoned that any perceived advantage Robertson gained was a result of the normal competitive dynamics of the market, rather than an unfair advantage attributable to the breach of contract. Consequently, the court dismissed the claim for an inquiry by a Master and upheld the original damages assessment.

The court's final orders were that the claim for an inquiry by a Master as to the assessment of damages was dismissed. The damages previously assessed by the court were confirmed, and no further inquiry was ordered. Adler Mallach Holdings' appeal was therefore unsuccessful, and the judgment in favour of Robertson was upheld in its entirety.