MMAL Rentals Pty Limited (ACN 008 293 490) & Ors v Bernard John BRUNING [2004] NSWCA 451

Reported Decision : 63 NSWLR 167

New South Wales Court of Appeal

CITATION : MMAL Rentals Pty Limited (ACN 008 293 490) & Ors v Bernard John BRUNING [2004] NSWCA 451 HEARING DATE(S) : 27 & 28 September 2004 JUDGMENT DATE : 9 December 2004

JUDGMENT OF : Spigelman CJ at 1; Mason P at 226; Hodgson JA at 227 DECISION : Appeal dismissed; cross appeal allowed.

CATCHWORDS : CONTRACT - Meaning of "fair market value" - Share valuation - Use that may be made of evidence of an offer in a valuation exercise - Whether special potentiality or special value to one purchaser may be taken into account - Whether minority discount should apply - Whether minority shares have a 'greenmail' value - INDUSTRIAL LAW - Unfair contract - Jurisdiction under s106 - Relationship between s106 and oppression - Remuneration of managing director linked to share agreement - Disparity between expected financial benefit and benefit actually received Trade Practices Act 1974 LEGISLATION CITED : Corporations Act 2000 Industrial Relations Act 1996 Jurisdiction of Courts (Cross Vesting) Act 1987 Blefari v The Minister (1962) 8 LGRA 1 Boland v Yates Property Corporation Pty Ltd [1999] HCA 64, (1999) 74 ALJR 209 Brett Lees Norager v Charles Norager & Son Ltd (1999) NZCA 255 Bruning v Kingmill (Australia) Pty Limited (1988) 44 NSWLR 180 Caldwell v Minister of Transportation and Communications (1982) 23 LCR 286 Capricorn Diamonds Investments Pty Ltd v Catto [2002] VSC 105, (2002) 5 VR 61 Cattanach v Water Conservation and Irrigation Commission [1963] NSWR 304 Chen v Karandonis [2002] NSWCA 412 Commonwealth v Reeve (1949) 78 CLR 410 Coombs v Dynasty Pty Ltd (1994) 14 ACSR 60 Cordelia Holdings Pty Ltd v Newkey Investments Pty Ltd [2004] FCAFC 48 E S Gordon Pty Ltd v Idameneo (No 123) Pty Ltd (1994) 15 ACSR 536 Freestone v Parramatta City Council (1974) 34 LGERA 35 Gambotto v WCP Ltd [1995] HCA 12, (1995) 182 CLR 432 Geita Sebea v Territory of Papua (1941) 67 CLR 544 Goold & Rootsey v The Commonwealth (1993) 42 FCR 51 Gregory v Commissioner of Taxation (Cth) (1971) 123 CLR 547 Harris v Municipal Council of Sydney (1910) 10 SR (NSW) 860 Henderson v Armadio Pty Ltd (No 1) (1995) 62 FCR 1 Holt v Cox (1994) 15 ACSR 313 Hustlers Pty Ltd & Robert Reid Pty Ltd v Valuer General [1967] 2 NSWR 760, [1967] 4 LGRA 269 In the Marriage of Dah and J E Hull (1983) 9 FamLR 241 In the Marriage of K D and P A Reynolds (1984) 10 FamLR 388 Inland Revenue Commission v Clay [1914] 1 KB 339 Inland Revenue Commission v Clay [1914] 3 KB 466 James Patrick & Co Pty Ltd v Minister of State for the Navy (1944) Argus Law Reports 254 CASES CITED : Marcus Clark and Co Ltd v Commissioner for Railways (1949) 29 LVR 98 Marks v GIO Australia Holdings Ltd [1998] HCA 69, (1998) 196 CLR 494 McDonald v Deputy Federal Commissioner of Land Tax for New South Wales (1915) 20 CLR 231 Melcann Ltd v Super John Pty Ltd (1994) 13 ACLC 92 Michon v National Capital Commission (1974) 6 LCR 152 Minister for Public Works v Thistlethwayte [1954] AC 475 Mordecai v Mordecai (1988) 12 NSWLR 58 Nelungaloo Pty Ltd v The Commonwealth (1948) 78 CLR 495 O'Neill v Phillips [1999] 1 WLR 1092 Old UGC Inc v Industrial Relations Commission of New South Wales [2004] NSWCA 197 Pastoral Finance Association Ltd v The Minister [1914] AC 1083 Pauls Ltd v Dwyer [2002] QCA 545, (2002) 43 ACSR 413 Percival Peterborough Corporation (1921) 1 KB 414 Phillipou v Housing Commission of Victoria (1969) 18 LGRA 254 Poirier-White v Regional Municipality of Ottowa-Carleton (1979) 16 LCR 210 QSR Limited v Industrial Relations Commission of New South Wales [2004] NSWCA 199, (2004) 208 ALR 368 Raja Vyricherla Narayana Gajapatiraju v Revenue Divisional Officer [1939] AC 302 Re An Arbitration Fletcher Humphreys & Co Limited v Middleton [1944] NZLR 502 Re Bird Precision Bellows Limited [1986] 1 CH 658 Re ESC Publishing Ltd [1990] BCC 335 Sapir v Sapir (No 2) (1989) 13 FamLR 362 Scottish Cooperative Wholesale Society Limited v Meyer [1959] AC 324 Solution 6 Holdings Limited v Industrial Relations Commission of New South Wales [2004] NSWCA 200, (2004) 208 ALR 328 Spencer v The Commonwealth of Australia (1907) 5 CLR 418 Stockl v Rigura Pty Ltd [2004] NSWCA 73, [2004] ANZ ConvR 265 Teh v Ramsay Centauri Pty Ltd [2002] NSWSC 456, (2002) 42 ACSR 354 United Rural Enterprises Pty Ltd v Lopmand Pty Ltd [2003] NSWSC 910, (2003) 47 ACSR 514 Waters v Thorn (1856) 22 Beav 547 MMAL Rentals Pty Ltd (ACN 008 293 490) (First Appellant) PARTIES : Mitsubishi Motors Australia Limited (ACN 007 870 395) (Second Appellant) Thrifty (Australia) Pty Ltd (Formerly Kingmill (Australia) Pty Ltd (ACN 003 966 649)) t/as Thrifty Car Rental (Third Appellant) Bernard John Bruning (Respondent) FILE NUMBER(S) : CA 40271/2004 Mr RJ Whitington QC / Mr A G Grant (Appellants) COUNSEL : Mr G Lindsay SC / Mr S Phillips (Respondent)