Drinkwater v Caddyrack Pty Ltd [2001] NSWSC 255

Drinkwater v Caddyrack Pty Ltd [2001] NSWSC 255

The appeal failed because the Master did not make any error of principle in rejecting the Pritchard asset-backing approach, preferring the Griffiths/Hewitt approach, and adopting the capitalisation of future maintainable profits method. The Master considered the objections and cross-examination, made a factual assessment of value, and the appellants did not demonstrate that the valuation basis was successfully challenged or entirely erroneous, particularly in the absence of a transcript of the evidence before the Master.

Jurisdiction
Australia
Judgment Date
10 April 2001
Procedural Posture
Appeal From a Master's Valuation of Shares in Corporations Law Oppression Proceedings / Appeal From Master Mc Laughlin's Reserved Judgment Valuing Shares
Outcome
Appeal dismissed with costs.
Legal Topics
['appeal From Master' 'share Valuation' 'capitalisation of Future Maintainable Profits' 'oppression Proceedings' 'expert Valuation Evidence']
['procedure' 'corporations Law' 'valuation'] ['appeal From Master' 'share Valuation' 'capitalisation of Future Maintainable Profits' 'oppression Proceedings' 'expert Valuation Evidence']

Case Brief

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Procedural Posture

Appeal From a Master's Valuation of Shares in Corporations Law Oppression Proceedings / Appeal From Master Mc Laughlin's Reserved Judgment Valuing Shares

Legal Issues

  1. 1 ['Whether the Master erred in principle in preferring the Griffiths/Hewitt valuation evidence over the Pritchard valuation evidence.' 'Whether the Master failed to make his own determination of the value of the shares.' 'Whether capitalisation of future maintainable profits was an appropriate method of valuing the shares.' 'Whether the Master misapplied that valuation method or made assumptions not supported by the evidence.' 'Whether the appeal could succeed without a transcript of the evidence before the Master.']

Ratio Decidendi

The appeal failed because the Master did not make any error of principle in rejecting the Pritchard asset-backing approach, preferring the Griffiths/Hewitt approach, and adopting the capitalisation of future maintainable profits method. The Master considered the objections and cross-examination, made a factual assessment of value, and the appellants did not demonstrate that the valuation basis was successfully challenged or entirely erroneous, particularly in the absence of a transcript of the evidence before the Master.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.' 'The exhibits, being the valuations, should remain with the papers.']