In The Matter Of Contact 121 Pty Limited (ACN) 093 596 537) In The Matter Of Contact 121 (Qld) Pty Limited (ACN) 118 907 047)

The applicants, Contact 121 Pty Limited and Contact 121 (Qld) Pty Limited, sought relief from the Supreme Court of Queensland regarding the valuation of shares in a corporate dispute. The dispute arose out of an agreement to sell shares in one company to the other, with a condition that the value of the shares would be determined by an expert's opinion. The applicants argued that the expert's opinion was flawed and thus did not comply with the contractual requirements for valuation.

The court was required to determine whether the alleged flaw in the expert's methodology rendered the opinion other than an opinion as to market value within the meaning of the contract. Specifically, the court had to assess if the expert's opinion, despite the flaw, still provided a reliable indication of the market value of the shares. This involved interpreting the contractual terms and evaluating the expert's methodology and conclusions.

The court found that while there was an error in the expert's methodology, it did not invalidate the overall opinion on the market value of the shares. The court emphasised that the expert's opinion, despite the flaw, still provided a reliable basis for determining the value. The error was considered minor and did not significantly affect the overall reliability or accuracy of the valuation. Consequently, the court ruled that the expert's opinion was still valid under the terms of the contract.

The court ordered that the valuation provided by the expert be accepted as the market value of the shares for the purposes of the agreement. This decision effectively resolved the dispute regarding the valuation and allowed the transaction to proceed on the basis of the expert's opinion.