Colonial Portfolio Services Ltd v Nissen

The case involved Colonial Portfolio Services Limited (Colonial) and Nissen, who were in dispute over the valuation of shares held by Nissen in Colonial. The matter was heard in the Supreme Court of South Australia. Colonial argued that the valuation of the shares should be based on the market value of the shares as determined by an independent valuer, while Nissen contended that the valuation should be based on the face value of the shares.

The legal issues before the court were whether the valuation of the shares should be based on the market value or the face value, and whether the contract between the parties allowed for a valuation based on the market value. The court was required to interpret the terms of the contract and determine the appropriate method of valuation.

The court found that the contract between the parties did not explicitly state the method of valuation to be used. However, the court held that the contract implicitly allowed for a valuation based on the market value of the shares. The court reasoned that the contract contained provisions that suggested the parties intended the valuation to be based on the market value, such as the requirement for an independent valuer to determine the value of the shares. The court also found that the market value of the shares was a more accurate reflection of the value of the shares than the face value. The court ordered that the valuation of the shares be based on the market value as determined by an independent valuer.