BBHF Pty Ltd v Sleeping Duck Pty Ltd

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE
COMMERCIAL COURT
CORPORATIONS LIST

S ECI 2021 04359

BBHF PTY LTD	Plaintiff
v
SLEEPING DUCK PTY LTD & ORS (according to the Schedule)	Defendants

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JUDGE:	Delany J
WHERE HELD:	Melbourne
DATE OF HEARING:	On the papers
DATE OF RULING:	2 September 2024
CASE MAY BE CITED AS:	BBHF Pty Ltd v Sleeping Duck Pty Ltd & Ors
MEDIUM NEUTRAL CITATION:	[2024] VSC 532

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PRACTICE AND PROCEDURE – Costs – Calderbank offers by second and third defendants – Unreasonable refusal to accept offers – Order for payment of second and third defendants’ costs accordingly – Fourth defendant who did not make the Calderbank offers not entitled to rely on them – Fourth defendant’s costs to be paid on standard basis.

PRACTICE AND PROCEDURE – Gross sum costs order – Application for uplift refused.

PRACTICE AND PROCEDURE – Order dismissing proceeding effective at the date of publication of trial reasons stating the proceeding dismissed.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Corrs Chambers Westgarth
For the Second and Third Defendants	James W S Peters with Nicholas C M Walter	Clayton Utz
For the Fourth Defendant	G Mukherji	Strongman & Crouch

TABLE OF CONTENTS

A.. 16 August 2022 valuation............................................................................................................ 4

B.. The Calderbank Offers............................................................................................................... 9

B1.... The First Offer: 22 August 2022......................................................................................... 9

B2.... The Second Offer: 17 October 2023................................................................................. 10

C.. Was the rejection of the offers unreasonable?: The Principles......................................... 12

C1.... The First Offer: the Companies’ submissions................................................................ 14

C2.... The First Offer: BBHF’s submissions.............................................................................. 16

C3.... The Second Offer: the Companies’ submissions........................................................... 17

C4.... The Second Offer: BBHF’s submissions......................................................................... 18

D.. The Calderbank Offers: Consideration................................................................................. 18

D1.... The First Offer.................................................................................................................... 18

D1.1... Stage of proceedings............................................................................................. 19

D1.2... Extent of compromise........................................................................................... 21

D1.3... The requirement for a deed of settlement.......................................................... 23

D2.... The Second Offer............................................................................................................... 24

E... Mr Bandopadhayay’s costs....................................................................................................... 25

E1.... BBHF’s submissions.......................................................................................................... 25

E2.... Mr Bandopadhayay’s submissions................................................................................. 27

E3.... Mr Bandopadhayay’s costs: Consideration................................................................... 29

F... The claims for gross sum costs and uplift............................................................................. 33

F1.... Companies’ submissions.................................................................................................. 33

F1.1.... Principles................................................................................................................ 33

F1.2.... Evidence.................................................................................................................. 35

F1.3.... Submissions............................................................................................................ 36

F2.... BBHF’s submissions.......................................................................................................... 37

F3.... Companies’ reply submissions........................................................................................ 38

F4.... Mr Bandopadhayay: Evidence and submissions.......................................................... 39

F5.... Consideration: Gross sum costs and uplift.................................................................... 39

G.. Dismissal..................................................................................................................................... 41

G1.... Submissions........................................................................................................................ 41

G2.... Consideration..................................................................................................................... 45

H.. Final orders.................................................................................................................................. 46

HIS HONOUR:

1. These reasons relate to costs and the effective date of dismissal of the proceeding.

1. BBHF Pty Ltd (‘BBHF’) instituted the proceeding on 19 November 2021 claiming the conduct of the first defendant’s (‘Sleeping Duck’) affairs was oppressive to, unfairly prejudicial to and/or unfairly discriminatory to BBHF within the meaning of section 232 of the Corporations Act 2001 (Cth) (‘Corporations Act’).  Further, or in the alternative, that Sleeping Duck and the second and third defendants, Energon Shield and S2 Ulysses Pty Ltd (‘Companies’) breached the terms of the Call Option Deed entered into on around 14 April 2021 (‘Call Option Deed’).

1. BBHF sought orders restoring BBHF to the position it was…