David Morgan Investments Pty Ltd v Maggie Beer Holdings Ltd; Maggie Beer Holdings Ltd v David Morgan Investments Pty Ltd [2024] NSWSC 778

Supreme Court New South Wales

Medium Neutral Citation: David Morgan Investments Pty Ltd v Maggie Beer Holdings Ltd; Maggie Beer Holdings Ltd v David Morgan Investments Pty Ltd [2024] NSWSC 778 Hearing dates: 19 June 2024 Decision date: 25 June 2024 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Expert to calculate Earnings having regard to each of cll 2.1, 2.2, 2.3(a) and 2.3(b)(vi) in Sch 11 of the Share Purchase Deed. Expert to decide all Contested Matters in the Vendors' Report. Catchwords: CONTRACTS – construction – proper construction of a Share Purchase Deed – purchase of an online hamper and gift business – dispute as to what principles the expert must apply in calculating earnings and earn out amount – whether expert must take into account changes in manner in which purchaser has conducted the business following purchase Cases Cited: Australian Vintage Ltd v Belvino Investments No 2 Pty Ltd [2015] NSWCA 275 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; [1982] HCA 24 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; [2017] HCA 12 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Miles v Luneburger Franchising Pty Ltd [2021] NSWCA 248 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Orleans Investments Pty Ltd v MindShare Communications Ltd [2009] NSWCA 40 Reardon Smith Line Ltd v Hansen-Tangen; Hansen-Tangen v Sanko Steamship Co [1976] 1 WLR 989; [1976] 3 All ER 570 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 Victoria v Tatts Group Ltd [2016] HCA 5 Texts Cited: P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Category: Principal judgment Parties: David Morgan Investments Pty Ltd (First Plaintiff/Cross-Defendant) Emily McWaters Investments Pty Ltd (Second Plaintiff/Cross-Defendant) Maggie Beer Holdings Ltd (Defendant/Cross-Claimant) Representation: Counsel: M A Izzo SC / Z A Graus (Plaintiffs/Cross-Defendants) S Mirzabegian SC / N L Gollan (Defendant/Cross-Claimant)