Maven Dental Group Pty Ltd v S & M England Pty Ltd

Maven Dental Group Pty Ltd brought an action against S & M England Pty Ltd, and related entities, in the Supreme Court of New South Wales. The plaintiff sought compensation for losses arising from the breach of a services agreement. The plaintiff had purchased a dental practice from the defendants, with the second defendant continuing to work at the practice under a services agreement. Following allegations of sexual harassment, the plaintiff terminated the services agreement. The plaintiff claimed compensation for the loss of the second defendant's earning capacity. The central legal issue before the Court was whether the plaintiff was entitled to compensation for the loss of the second defendant's earning capacity and, if so, the appropriate amount of compensation.

The Court considered the nature and terms of the services agreement, the events leading to its termination, and the circumstances surrounding the second defendant's departure from the practice. The Court examined the evidence regarding the second defendant's earning capacity, including expert testimony, and assessed the impact of his departure on the plaintiff's business. The Court found that the plaintiff was entitled to compensation for the loss of the second defendant's earning capacity, as the termination of the services agreement was a direct result of the second defendant's actions. The Court calculated the appropriate amount of compensation based on the evidence presented, determining that the plaintiff was entitled to be compensated for the lost earning capacity of the second defendant.

The Court awarded the plaintiff compensation in the sum of $1,446,453.23. The Court also noted that if the parties were unable to agree on costs, it would hear submissions regarding costs at a later date. This judgment provides clarity on the compensation available to a party in a situation where a services agreement is terminated due to the misconduct of an individual connected to the business being sold.