Harrison v Franich

The appeal was between Wayne Harrison and Catherine Winifred Franich, who were parties to an agreement dated 7 June 2002 to buy a stallion, Magic Ring. The central issue was whether the agreement created a partnership and if so, the extent of the obligations of each party in relation to that partnership and to a syndicate formed as part of the agreement. The appeal also covered other claims and counterclaims arising from the partnership and syndicate.

The court had to determine whether the agreement dated 7 June 2002 created a partnership between the parties. The court also had to consider whether Mr Harrison owed fiduciary duties to the syndicate, if the management fee paid to him was properly approved, and if certain meetings and resolutions were valid. The court further needed to consider the claims and counterclaims between the parties.

The court found that the agreement of 7 June 2002 did create a partnership between Mr Harrison and Ms Franich. The court accepted the Judge's conclusion that there was a profit motive evidenced by the syndication of Magic Ring. The court also found that the Magic partnership had dissolved by 30 June 2003 and that each party owned 11 shares of the total 40 shares in Magic Ring. In relation to the syndicate, the court found that Mr Harrison held the management fee on trust for the syndicate and that the meeting on 6 August 2003 was not properly constituted. The court rescinded certain orders made in the High Court and made new orders in their place, including that Mr Harrison pay Ms Franich $180,641.35 plus interest.