Barboza v Blundy

Case [2021] QSC 82


SUPREME COURT OF QUEENSLAND

CITATION:

Barboza v Blundy & others [2021] QSC 82

PARTIES:

JANELLE BARBOZA

(plaintiff)

v

BRETT BLUNDY

(first defendant)

HONEY BIRDETTE (AUST) PTY LTD

ACN 117 200 647

(second defendant)

BNT HOLDCO PTY LIMITED

ACN 129 156 921

(third defendant)

BB RETAIL CAPITAL PTY LIMITED

ACN 006 175 033

(fourth defendant)

FILE NO/S:

BS 4181 of 2019

DIVISION:

Trial Division

PROCEEDING:

Claim

DELIVERED ON:

23 April 2021

DELIVERED AT:

Brisbane

HEARING DATE:

On the papers

JUDGE:

Bond J

ORDER:

The orders of the Court are:

1.   The plaintiff must pay the defendants’ costs of the proceeding until 8 November 2019, on the standard basis.

2.   The plaintiff must pay the defendants’ costs of the proceeding after 8 November 2019, on the indemnity basis.

CATCHWORDS:

PROCEDURE – CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS – COSTS – OFFERS OF COMPROMISE, PAYMENTS INTO COURT AND SETTLEMENTS – INFORMAL OFFERS AND CALDERBANK LETTERS – UNREASONABLE REFUSAL OF OFFER – where the defendants made two Calderbank offers – where the defendants made a third offer following the plaintiff giving evidence on the first day of trial – where the plaintiff did not accept the offers within time – where the Calderbank offers were both open for 14 days – whether the applicant acted unreasonably in not accepting the offers

Calderbank v Calderbank [1975] 3 All ER 333, cited

S.H.A Premier Constructions Pty Ltd v Niclin Constructions Pty Ltd (No 2) [2020] QSC 323, applied

COUNSEL:

S Couper QC, with B Wacker, for the defendants

SOLICITORS:

Holding Redlich for the plaintiff

Gilbert + Tobin for the defendants

Introduction

  1. Barboza v Blundy [2021] QSC 68 was my judgment on the merits of this proceeding after a trial which took place on 3, 4, 5, 6, 7 and 11 August 2020.

  2. In my judgment, I encapsulated the plaintiff’s case in this way (footnotes omitted):[1]

    “[1] The plaintiff was a member and director of the second defendant (the Company) from the time of its establishment in 2005 until about November 2014 when the majority shareholder (the third defendant (BNT)) acquired her shares by exercising a call option under a shareholders’ agreement.

    [2] The first defendant, Mr Blundy, is and was a highly successful retailer and entrepreneur. He was the majority shareholder of the fourth defendant (BBRC) which was the parent company of BNT.

    [3] In this proceeding, which was commenced by claim in 2019, the plaintiff complains about particular conduct of Mr Blundy, BBRC and BNT during the last year of her involvement with the Company. Essentially, her case is that Mr Blundy imposed an accelerated domestic expansion plan on the Company over her opposition to that course.  She says that the level of expenditure associated with that course operated to her disadvantage because it reduced the amount she received on exercise of the call option.

    [4] She seeks to characterise the conduct of which she complains as oppressive conduct within the meaning of s 232 of the

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AGLC
Barboza v Blundy [2021] QSC 82
Case
[2021] QSC 82
Decision Date

CaseChat Overview and Summary

The case of Barboza v Blundy involved the plaintiff, Barboza, and the defendants, Blundy. The dispute centred around whether the plaintiff had acted unreasonably by not accepting offers of compromise made by the defendants. The case was heard in the Supreme Court of New South Wales. The defendants made two Calderbank offers, which are informal offers of settlement that can impact the costs orders if the offer is not accepted. Following the plaintiff giving evidence on the first day of the trial, the defendants made a third offer, which was also open for 14 days. The plaintiff did not accept any of the offers within the specified timeframes. The central legal issue for the court was to determine whether the plaintiff acted unreasonably by not accepting the offers of compromise.

The court considered the principles set out in previous cases regarding the acceptance of offers of compromise and the consequences of unreasonable refusals. The court noted that Calderbank offers, if not accepted, can have significant implications on the costs orders. The court found that the plaintiff had not acted reasonably in rejecting the offers, as they were not manifestly excessive or made in bad faith. The court highlighted that the plaintiff had an opportunity to assess the merits of the case before making a decision on the offers, and the failure to accept the offers within the specified timeframes was unreasonable.

In light of the plaintiff's unreasonable refusal of the offers, the court made orders for the plaintiff to pay the defendants' costs. Specifically, the court ordered that the plaintiff must pay the defendants' costs of the proceeding until 8 November 2019, on the standard basis, and the costs of the proceeding after 8 November 2019, on the indemnity basis. This decision underscores the importance of considering and acting upon offers of compromise in a timely and reasonable manner.

Orders

Orders of the court

The orders of the Court are:

1. The plaintiff must pay the defendants’ costs of the proceeding until 8 November 2019, on the standard basis.

2. The plaintiff must pay the defendants’ costs of the proceeding after 8 November 2019, on the indemnity basis.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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