Piggott & Anor v Cowen

This case involved an application for special leave to appeal to the High Court of Australia. The applicants, Keith and Bridget Piggott, sought to appeal a decision concerning their financial adviser and accountant, Geoffrey Nathan Cowen, and his family company, Dallyn Investments Pty Limited. The dispute arose from a gold mining venture in north Queensland that the male applicant wished to undertake in May 1980. He sought the first respondent's advice on financing the acquisition of mining leases and on involving another client, Mr Widjaja, in the project. The first respondent charged fees for this advice.

The central legal issue before the court was whether the first respondent, acting as the male applicant's financial adviser and accountant, had acquired an interest in the mining venture at an undervalue. The applicants contended that the 26 per cent interest acquired by the first respondent and Mr Widjaja collectively was obtained for less than its true worth. This contention was based on the costs associated with the venture and the proportion of the interest acquired.

The court was required to consider the nature of the professional relationship between the applicant and the first respondent, which had been established as that of a financial adviser and accountant. The evidence presented indicated that the first respondent had claimed entitlement to fees in respect of the venture. The specific complaint revolved around the terms of the agreement where Mr Widjaja acquired a 16 per cent interest for $80,000, implying a value of $5,000 per percentage unit. The first respondent, by himself, acquired a portion of the remaining interest. The applicants argued that this acquisition by the respondent was at an undervalue.