Nutech Wall & Ceiling Systems v VMF Holdings (NSW) [2008] NSWSC 980

Nutech Wall & Ceiling Systems v VMF Holdings (NSW) [2008] NSWSC 980

The profit or loss of the joint venture should be assessed upon completion of all projects that were contracted for as at the date of termination, not solely as at the date of termination. The referee's report, which was based on an incorrect assumption regarding the timing of closing the accounts, should not be adopted for determining profit or loss after completion of projects. The matter is to be referred back to the referee for proper accounting on the appropriate basis.

Parties
Plaintiff: Nutech Wall & Ceiling Systems Pty Ltd; Defendants: VMF Holdings (NSW) Pty Ltd & 6 Ors
Jurisdiction
Australia
Judgment Date
19 September 2008
Procedural Posture
Equity / Interlocutory Application Regarding Referee's Report
Outcome
Further question referred to referee; plaintiff's notice of motion dismissed; defendants' notice of motion otherwise dismissed; costs of both notices of motion to be defendants' costs in the proceedings; short minutes of order to be brought in.
Legal Topics
Joint Venture Accounting, Winding Up of Joint Ventures, Adoption of Referee's Report, Repudiation and Termination of Joint Venture Agreements
Equity Partnerships Joint Ventures Joint Venture Accounting Winding Up of Joint Ventures Adoption of Referee's Report Repudiation and Termination of Joint Venture Agreements

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Parties

Nutech Wall & Ceiling Systems Pty Ltd

Plaintiff

VMF Holdings (NSW) Pty Ltd & 6 Ors

Defendants

Procedural Posture

Equity / Interlocutory Application Regarding Referee's Report

Legal Issues

  1. 1 Whether profit or loss of joint venture should be determined at date of termination or after completion of all joint venture projects
  2. 2 Whether referee's report should be adopted in part or in full
  3. 3 Whether further question regarding accounting for joint venture should be referred to referee

Ratio Decidendi

The profit or loss of the joint venture should be assessed upon completion of all projects that were contracted for as at the date of termination, not solely as at the date of termination. The referee's report, which was based on an incorrect assumption regarding the timing of closing the accounts, should not be adopted for determining profit or loss after completion of projects. The matter is to be referred back to the referee for proper accounting on the appropriate basis.

Court Disposition

Further question referred to referee; plaintiff's notice of motion dismissed; defendants' notice of motion otherwise dismissed; costs of both notices of motion to be defendants' costs in the proceedings; short minutes of order to be brought in.

Orders

  • Plaintiff's notice of motion filed 23 June 2008 dismissed.
  • Defendants' notice of motion filed 18 June 2008 otherwise dismissed.