Lahoud v Lahoud [2010] NSWSC 1297

New South Wales Supreme Court

CITATION : Lahoud v Lahoud [2010] NSWSC 1297

HEARING DATE(S) : 28 & 29 October 2010

JUDGMENT DATE : 10 November 2010

JURISDICTION : Equity

JUDGMENT OF : Ward J

DECISION : Declare that the Independent Auditor's Report dated 24 August 2010 is valid. Order that Joseph Lahoud pay the sum of $346,027.17 to Victor Lahoud. Order that Joseph Lahoud pay the reasonable costs of (or fees rendered by) the auditor in relation to the audit. Amended Second Cross-Claim brought by Joseph Lahoud and Joseph Lahoud & Associates be dismissed. Order that cross-claimants pay the fourth cross-defendant's costs of the cross-claim. To hear submissions on other costs orders as necessary.

CATCHWORDS : PRACTICE and PROCEDURE - whether audit conducted pursuant to orders previously made is valid or should be set aside - whether audit in conformity with contract - whether an obligation of natural justice owed by auditor - HELD - audit was in conformity with contract as previously construed - no obligation of natural justice - receipt of submissions assumed at best an obligation to give due consideration and a reasonable opportunity to respond - there was no breach of any such duty - the sum repayable by Joseph Lahoud consequent upon the audit is $346,027.17 - costs of the audit are the reasonable costs of the auditor in the conduct of the audit (including his costs of considering and responding to the various submissions put to him) - RESTITUTION - whether entitlement to a 'freestanding' award of interest for restitution of interest on sum retained in accordance with Terms of Settlement but repayable upon subsequent audit determination - HELD - no unjust enrichment - no restitution of interest

LEGISLATION CITED : Civil Procedure Act 2005 (NSW)