Devine Real Estate Concord Pty Limited v Agha

The plaintiffs, Devine Real Estate Concord Pty Limited, sought damages from the defendant, Agha, for breaches of various restraints in an employment agreement and a shareholders’ agreement. The disputes arose from the defendant's actions that resulted in losses to the plaintiffs. The case was heard in the Supreme Court of New South Wales.

The central legal issues before the court were whether the ‘Sellars’ discount should apply to the calculation of damages awarded to the plaintiffs and whether the second defendant, who had previously been the subject of undertakings and injunctions, was now entitled to damages flowing from those undertakings and injunctions. The court had to consider the implications of the Court of Appeal reversing findings as to the second defendant's liability and whether the plaintiffs' undertaking regarding damages still held.

The court found that the ‘Sellars’ discount should not apply to the damages calculation in this instance. The court determined that the second defendant was not entitled to damages arising from the earlier undertakings and injunctions because the plaintiffs had provided a relevant undertaking as to damages. The court's reasoning hinged on the reversal of findings regarding the second defendant's liability and the need to consider the plaintiffs' undertaking regarding damages. The outcome confirmed the plaintiffs' entitlement to the full amount of damages without the application of the ‘Sellars’ discount.