Ozmen Entertainment Pty Ltd v Neptune Hospitality Pty Ltd [2018] FCA 647

Ozmen Entertainment Pty Ltd v Neptune Hospitality Pty Ltd [2018] FCA 647

The referee’s report should be adopted except for section 3.8, which is remitted for further consideration as the amortisation rate was based on a factual error regarding the useful life of the Joint Venture Agreement. The challenge to related party transactions and the rental allowance were not made out; evidence and judgment of the referee were reasonably applied. Costs are to be split 80% respondent, 20% applicants based on rationale provided in the report.

Parties
First Plaintiff: Ozmen Entertainment Pty Ltd; Second Plaintiff: Kanki Sea Tourism Hospitality & Entertainment Pty Ltd; Defendant: Neptune Hospitality Pty Ltd
Jurisdiction
Australia
Judgment Date
02 May 2018
Procedural Posture
Interlocutory Application / Adoption of Referee's Report
Outcome
Referee’s report adopted except for section 3.8, which is remitted; parties’ reserved rights noted; costs allocated per referee’s recommendation; various procedural directions issued.
Legal Topics
Joint Venture, Hospitality Business, Accounting Treatment, Referee Report Adoption
Admiralty and Maritime Joint Venture Hospitality Business Accounting Treatment Referee Report Adoption

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Ozmen Entertainment Pty Ltd

First Plaintiff

Kanki Sea Tourism Hospitality & Entertainment Pty Ltd

Second Plaintiff

Neptune Hospitality Pty Ltd

Defendant

Procedural Posture

Interlocutory Application / Adoption of Referee's Report

Legal Issues

  1. 1 Whether disputed items in profit statements under the Joint Venture Agreement should be allowed or disallowed
  2. 2 Whether the referee’s report should be adopted, rejected or remitted to address specific errors
  3. 3 Whether certain related party transactions and amortisation expenses are validly incurred

Ratio Decidendi

The referee’s report should be adopted except for section 3.8, which is remitted for further consideration as the amortisation rate was based on a factual error regarding the useful life of the Joint Venture Agreement. The challenge to related party transactions and the rental allowance were not made out; evidence and judgment of the referee were reasonably applied. Costs are to be split 80% respondent, 20% applicants based on rationale provided in the report.

Court Disposition

Referee’s report adopted except for section 3.8, which is remitted; parties’ reserved rights noted; costs allocated per referee’s recommendation; various procedural directions issued.

Orders

  • Report of Referee remitted for further consideration of section 3.8 and otherwise adopted under Federal Court rule 28.67
  • Applicants’ reservation of right to contend that amortisation and appreciation are not permissible deductions noted