Chen v Karandonis

The appeal concerned a dispute arising from a joint venture between the appellant, Mr Chen, and the respondent, Mr Karandonis. Mr Chen alleged that Mr Karandonis had engaged in a conspiracy to injure him in his trade or business, and sought damages for losses he claimed to have suffered as a result. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether Mr Karandonis had engaged in the tort of conspiracy, and if so, the appropriate measure of damages. This included determining whether Mr Chen was entitled to recover for losses that were arguably reflective of the joint venture's losses, and whether exemplary damages were warranted. The Court also considered the relevance of an offer of compromise made by Mr Karandonis in relation to costs.

The Court of Appeal found that while Mr Karandonis had engaged in conduct that amounted to a conspiracy to injure Mr Chen in his trade, the damages awarded by the trial judge were excessive. Specifically, the Court held that Mr Chen could not recover for losses that were merely reflective of the diminished value of his share in the joint venture, as this would constitute a double recovery. The Court also found that the conduct of Mr Karandonis did not warrant the award of exemplary damages.

Consequently, the appeal in proceeding number 40762/01 was allowed in part, with the damages awarded to Mr Chen being reduced. The appeal in proceeding number 40763/01, which concerned other aspects of the judgment, was dismissed.