Jardein Pty Ltd v Stathakis

Jardein Pty Ltd has appealed against a decision that valued the company's share in ACMP at nil. The appeal is based on three grounds: first, the primary judge's failure to consider the evidence of Lisa Stathakis as glaringly improbable; second, the denial of natural justice by not requiring Mr Stathakis to answer questions posed by Mr Blashki; and third, the failure to conclude that a buyout was not possible and instead order that the company be wound up. The primary judge, in reviewing the company’s books, concluded that the value of Jardein’s share in ACMP was nil due to the company’s liabilities exceeding its assets by over $260,000. In contrast, Mr Blashki valued the share between $124,676 and $179,812, primarily due to his differing assessment of the company’s profitability. The critical difference between the two valuers lay in their treatment of unrecorded cash payments and expenses, with Mr Blashki believing they had been misappropriated.

The court addressed the appeal by examining the evidence and the grounds presented. It found that the primary judge had not erred in his assessment of the evidence. The court determined that the primary judge's decision was based on a thorough review of the evidence and that there was no basis to find the evidence of Lisa Stathakis as "glaringly improbable" or "contrary to an incontrovertible fact." The court also found that the trial was conducted fairly and that there was no denial of natural justice. Lastly, the court concluded that the primary judge's decision to not wind up the company was justified given the potential for a buyout.

The appeal was dismissed, and the costs of the appeal were awarded to the respondent. The court ordered that the executed share transfer be delivered to the respondent’s solicitors.