In the matter of Cheal Industries Pty Ltd - Fitzpatrick v Cheal [2012] NSWSC 595

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Cheal Industries Pty Ltd - Fitzpatrick v Cheal [2012] NSWSC 595 Hearing dates: 14 May 2012 Decision date: 01 June 2012 Jurisdiction: Equity Division Before: Ward J Decision: Nominal value attributed to goodwill associated with use of company name Catchwords: CORPORATIONS - equitable compensation for oppressive conduct by defendants pursuant to s 232 Corporations Act 2001 (Cth) - value of goodwill associated with use of company name - parties elected for the Court to determine the nominal value - the relief granted for oppressive conduct may be fashioned so as to compensate the oppressed party - method of valuation may be adapted to the dictates of fairness in the circumstances - determination of nominal value not a strictly mathematical exercise, but involves an element of intuition Legislation Cited: Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Cases Cited: Ahmadi v Fairfax Media Publications Pty Ltd [2010] NSWSC 702 Backoffice Investments v Campbell [2007] NSWSC 161; (2007) 61 ACSR 144 (2007) 25 ACLC 302 Campbell v Backoffice Investments Pty Ltd [2008] NSWCA 95 Campbell v Backoffice Investments Pty Ltd [2009] HCA 36 Commonwealth of Australia v Amann Aviation Pty Limited (1991) 174 CLR 64 Coombs v Dynasty Pty Ltd (1994) 14 ACSR 60 Drinkwater v Caddyrack Pty Ltd [1997] NSWSC 431 Dwyer v Lippiatt; Dwyer v Backpackers R Us (2004) 50 ACSR 333 Dynasty Pty Ltd v Coombs (1995) 59 FCR 122 ES Gordon Pty Ltd v Idameneo (No 123) Pty Ltd (1995) 15 ACSR 536 Jones v Schiffmann (1971) 124 CLR 303 Profinance Trust SA v Gladstone [2002] 1 WLR 1024 Rankine v Rankine (1995) 124 FLR 340 Re London School of Electronics Ltd [1986] Ch 211 Scottish Co-operative Wholesale Society v Meyer [1959] AC 324; [1958] 3 All ER 66 Shelton v NRMA [2004] FCA 1393; (2004) 51 ACSR 278 Short v Crawley (No 30) [2007] NSWSC 1322 Vadori v AAV Plumbing [2010] NSWSC 274; (2010) 77 ACSR 616 Texts Cited: N/A Category: Consequential orders Parties: Simone Leah Fitzpatrick (First Plaintiff) ACN 089 142 870 Pty Ltd (Second Plaintiff) James Mitchell Cheal (First Defendant) Cheal Industries Pty Ltd (Second Defendant) Chilli Surfboards Pty Ltd (Third Defendant) Representation: Counsel: M B Evans (Plaintiffs) Ms R Francois (Defendants) Solicitors: Lathams Lawyers (Plaintiffs) Brown Wright Stein (Defendants) File Number(s): 09/291052