Araujo v Ready Fence (NSW) Pty Ltd

The case of Araujo versus Ready Fence (NSW) Pty Ltd was heard in the Supreme Court of New South Wales. The plaintiff, Araujo, sought to enforce a consent order made by the court to acquire shares in the defendant company, Ready Fence (NSW) Pty Ltd. The primary issue was the valuation of the shares as stipulated in the consent order, which was essential for determining the amount to be paid for the shares. The court had to decide whether the valuation evidence provided by Araujo was sufficient and acceptable to determine the value of the shares.

The legal issues the court considered involved the interpretation of the consent order and the adequacy of the evidence provided for the valuation of the shares. Araujo argued that the valuation evidence was sufficient, while Ready Fence contended that the valuation evidence did not meet the requirements set out in the consent order. The court had to determine if the valuation evidence was reliable, relevant, and in line with the terms of the consent order.

The court found that the valuation evidence provided by Araujo was not acceptable as it did not comply with the terms of the consent order. The order had specified certain methods and criteria for the valuation, which the evidence failed to meet. The court emphasised the importance of adhering to the agreed terms in a consent order and that any deviation could result in the order being unenforceable. As a result, the court ruled that the valuation evidence was insufficient to determine the value of the shares. Consequently, the court did not proceed to order the acquisition of shares until the parties provided acceptable valuation evidence.