Crawley v Short (No 2)

Case [2010] NSWCA 97


NEW SOUTH WALES COURT OF APPEAL

CITATION:
Crawley v Short (No 2) [2010] NSWCA 97

FILE NUMBER(S):
40022/2008

HEARING DATE(S):
22 April 2010

JUDGMENT DATE:
7 May 2010

PARTIES:
Christopher Crawley (First Appellant)
Marsico Holdings Pty Limited (Second Appellant)
J & J O'Brien Pty Limited (Third Appellant)
Vensel Pty Limited (Fourth Appellant)
Trudale Pty Limited (Fifth Appellant)
Judith Kiralyhidi Crawley (Sixth Appellant)
Aldonet Pty Ltd (Seventh Appellant)
Springsley Holdings Pty Ltd (Eighth Appellant)
Gladewood Enterprises Pty Ltd (Ninth Appellant)
Roslyn Short as Executrix of the Estate of the late Warwick Gordon Short (First Respondent)
Nabatu Pty Ltd (Second Respondent)

JUDGMENT OF:
Allsop P Macfarlan JA Young JA   

LOWER COURT JURISDICTION:
Supreme Court - Equity Division

LOWER COURT FILE NUMBER(S):
SC 2824/98

LOWER COURT JUDICIAL OFFICER:
White J

LOWER COURT DATE OF DECISION:
26/11/07; 5/9/08

LOWER COURT MEDIUM NEUTRAL CITATION:
Short v Crawley (No 30) [2007] NSWSC 1322; Short v Crawley (No 38) [2008] NSWSC 917

COUNSEL:
W G Muddle SC (Appellants)
J Gleeson SC/T Thawley (Respondents)

SOLICITORS:
Bruce Stewart Dimarco (Appellants)
Freehills (Respondents)

CATCHWORDS:
CORPORATIONS - oppression - compulsory purchase order - basis of valuation of hotels

LEGISLATION CITED:
Corporations Act 2001 (Cth)

CATEGORY:
Consequential orders

CASES CITED:
United Rural Enterprises Pty Ltd v Lopmand Pty Ltd [2003] NSWSC 910; (2003) 47 ASCR 514

TEXTS CITED:

DECISION:
The Court orders:
(1)  Order 1 made by the Court below on 12 September 2008 (as varied by Orders 1 and 2 made by the Court below on 26 November 2008) be varied as follows:
a.  in paragraph (a), subparagraph (i),'$5,068,362’ be deleted and replaced with ‘$4,267,141’; and
b.  in paragraph (a), subparagraph (ii), ‘$6,374,772’ be deleted and replaced with ‘$6,699,637’;
(2)  Order 1 made by the Court below on 26 November 2008 be varied by deleting ‘$11,443,134.00’ and replacing it with ‘$10,966,778’; and
(3)  Within 21 days of the date of these Orders, by simultaneous exchange:
a. Mr Crawley make a payment to Nabatu for the increase in value of Nabatu’s share in J & J O’Brien Pty Limited, together with interest at rates prescribed in Schedule 5 of the UCPR from 15 December 2008 up to the date of payment; and
b. Nabatu make a payment to Mr Crawley for the decrease in value of Nabatu’s share in Marsico Holdings Pty Limited, together with interest at rates prescribed in Schedule 5 of the UCPR from 15 December 2008 up to the date of payment;
c.  The parties may agree, in advance of the simultaneous exchange of payments in paragraphs 3(a) and 3(b) above, to the netting of payments due to each other in accordance with paragraph (4) below.
The Court notes that:
(4)  On 15 December 2008, Mr Crawley paid to Nabatu the sum of $11,540,453.32 in satisfaction of Order 1 made by the Court below on 12 September 2008 as varied by Order 1 made by the Court below on 26 November 2008.  Accordingly, in order for the parties to comply with Order 3 above:
a. Mr Crawley…

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Details
AGLC
Crawley v Short (No 2) [2010] NSWCA 97
Case
[2010] NSWCA 97
Decision Date

CaseChat Overview and Summary

In this appeal and cross-appeal, the parties were Mr. Crawley and Nabatu, concerning a dispute arising from a compulsory purchase order in relation to certain hotel properties. The matter was heard by Allsop P, Macfarlan and Young JJA in the Court of Appeal.

The primary legal issues before the Court of Appeal involved the correct basis for valuing the hotel properties subject to the compulsory purchase order, and the consequential adjustments to the amounts payable between the parties. This included determining the appropriate figures for the increase in value of Nabatu's share in J & J O’Brien Pty Limited and the decrease in value of Nabatu's share in Marsico Holdings Pty Limited.

The Court of Appeal varied the orders of the court below by adjusting the monetary amounts payable between Mr. Crawley and Nabatu. These adjustments reflected a revised valuation of the hotel properties. The Court ordered that Mr. Crawley pay Nabatu for the increase in value of Nabatu's share in J & J O’Brien Pty Limited, and Nabatu pay Mr. Crawley for the decrease in value of Nabatu's share in Marsico Holdings Pty Limited, with both payments to include interest from 15 December 2008. The Court also noted a previous payment made by Mr. Crawley and specified the net amounts to be paid by each party to satisfy the revised orders.

The Court ordered that the previous orders be varied to reflect the recalculated sums. Mr. Crawley was to pay Nabatu an additional sum of $324,865 plus interest, and Nabatu was to pay Mr. Crawley the sum of $801,221 plus interest, with both payments to be made within 21 days of the orders by simultaneous exchange, allowing for netting. There were no orders as to the costs of the appeal and cross-appeal.

Orders

Orders of the court

The Court orders:

(1) Order 1 made by the Court below on 12 September 2008 (as varied by Orders 1 and 2 made by the Court below on 26 November 2008) be varied as follows:

a. in paragraph (a), subparagraph (i),'$5,068,362’ be deleted and replaced with ‘$4,267,141’; and

b. in paragraph (a), subparagraph (ii), ‘$6,374,772’ be deleted and replaced with ‘$6,699,637’;

(2) Order 1 made by the Court below on 26 November 2008 be varied by deleting ‘$11,443,134.00’ and replacing it with ‘$10,966,778’; and

(3) Within 21 days of the date of these Orders, by simultaneous exchange:

a. Mr Crawley make a payment to Nabatu for the increase in value of Nabatu’s share in J & J O’Brien Pty Limited, together with interest at rates prescribed in Schedule 5 of the UCPR from 15 December 2008 up to the date of payment; and

b. Nabatu make a payment to Mr Crawley for the decrease in value of Nabatu’s share in Marsico Holdings Pty Limited, together with interest at rates prescribed in Schedule 5 of the UCPR from 15 December 2008 up to the date of payment;

c. The parties may agree, in advance of the simultaneous exchange of payments in paragraphs 3(a) and 3(b) above, to the netting of payments due to each other in accordance with paragraph (4) below.

The Court notes that:

(4) On 15 December 2008, Mr Crawley paid to Nabatu the sum of $11,540,453.32 in satisfaction of Order 1 made by the Court below on 12 September 2008 as varied by Order 1 made by the Court below on 26 November 2008. Accordingly, in order for the parties to comply with Order 3 above:

a. Mr Crawley is to pay to Nabatu the sum of $324,865 plus interest at rates prescribed in Schedule 5 of the UCPR from 15 December 2008 up to the date of payment; and

b. Nabatu is to pay to Mr Crawley the sum of $801,221 plus interest at rates prescribed in Schedule 5 of the UCPR from 15 December 2008 up to the date of payment; and

(5) There is to be no order as to the costs of the appeal and cross-appeal.

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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