Lahoud v Lahoud [2010] NSWSC 1297

Lahoud v Lahoud [2010] NSWSC 1297

The Independent Auditor's Report dated 24 August 2010 is valid and binding under clause 2 of the Deed of Settlement, as it was an audit of the profits of the Cammeray project as previously construed by the Court, conducted with due consideration of submissions and reasonable opportunity for the parties to respond. No obligation of natural justice required the auditor to provide copies of files beyond inspection. Joseph Lahoud owes Victor Lahoud $346,027.17, corresponding to half the difference between the contractually contemplated profit calculation and the actual (audited nil) profit, and is liable for the auditor's reasonable professional costs only. There is no entitlement to interest...

Jurisdiction
Australia
Judgment Date
10 November 2010
Procedural Posture
Opposed Motions and Cross Claim Decided on Merits Following Audit and Contractual Construction Issues / Final Judgment After Hearing of Motions and Cross Claim
Outcome
Declaratory and monetary relief for applicant; cross-claim dismissed; costs as ordered.
Legal Topics
['expert Determination Validity' 'audit of Contractual Profit Share' 'implied Contractual Terms' 'procedural Fairness in Expert Determination' 'restitution and Unjust Enrichment' 'costs of Expert Appointment' 'restitutionary Interest']
['equity' 'contract'] ['expert Determination Validity' 'audit of Contractual Profit Share' 'implied Contractual Terms' 'procedural Fairness in Expert Determination' 'restitution and Unjust Enrichment' 'costs of Expert Appointment' 'restitutionary Interest']

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Procedural Posture

Opposed Motions and Cross Claim Decided on Merits Following Audit and Contractual Construction Issues / Final Judgment After Hearing of Motions and Cross Claim

Legal Issues

  1. 1 ['Whether the Independent Auditor’s Report dated 24 August 2010 is valid under the contract and binding on the parties' 'Whether the audit was conducted in accordance with the contract (Deed of Settlement)' 'Whether the auditor owed an obligation of natural justice/procedural fairness' 'Whether there was a breach of any such obligation' 'What amount is repayable by Joseph Lahoud as a result of the audit process' 'Whether Joseph Lahoud is liable for the auditor’s costs only, or other legal costs relating to the audit' 'Whether interest on the sum payable could be awarded on a restitutionary basis']

Ratio Decidendi

The Independent Auditor's Report dated 24 August 2010 is valid and binding under clause 2 of the Deed of Settlement, as it was an audit of the profits of the Cammeray project as previously construed by the Court, conducted with due consideration of submissions and reasonable opportunity for the parties to respond. No obligation of natural justice required the auditor to provide copies of files beyond inspection. Joseph Lahoud owes Victor Lahoud $346,027.17, corresponding to half the difference between the contractually contemplated profit calculation and the actual (audited nil) profit, and is liable for the auditor's reasonable professional costs only. There is no entitlement to interest...

Court Disposition

Declaratory and monetary relief for applicant; cross-claim dismissed; costs as ordered.

Orders

  • ["Declaration that the Independent Auditor's Report dated 24 August 2010 is valid and the audit was conducted in conformity with clause 2 of the Deed of Settlement." 'Order that Joseph Lahoud pay Victor Lahoud the sum of $346,027.17.' 'Order that Joseph Lahoud pay the reasonable costs (fees rendered by) of the...