Jacques v Forte Enterprises Pty Ltd [2012] NSWSC 1241

Jacques v Forte Enterprises Pty Ltd [2012] NSWSC 1241

Mr Senes breached fiduciary duty as a partner by failing to disclose his personal interest in Landmark, rejecting the Sterling offer not based on genuine appraisal but to benefit Landmark, and thereby denying the partnership the opportunity for a potentially more advantageous sale. The breach was material to Jacques’ loss and damages are to be calculated based on a discounted benefit from the Sterling offer minus benefits actually received.

Parties
Plaintiff: Phillip Jacques; First Defendant: Forte Enterprises Pty Ltd; Second Defendant: Ahtram Nominees Pty Ltd; Third Defendant: George Senes
Jurisdiction
Australia
Judgment Date
14 September 2012
Procedural Posture
Civil / Judgment
Outcome
Judgment for plaintiff against defendants
Legal Topics
Fiduciary Duty, Partnership Property Sale, Breach of Fiduciary Duty, Assessment of Damages
Equity Partnership Law Fiduciary Duty Partnership Property Sale Breach of Fiduciary Duty Assessment of Damages

Case Brief

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Parties

Phillip Jacques

Plaintiff

Forte Enterprises Pty Ltd

First Defendant

Ahtram Nominees Pty Ltd

Second Defendant

George Senes

Third Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Mr Senes (for Forte and Ahtram) breached fiduciary duties owed to Mr Jacques as partner by failing to disclose a personal interest in the purchaser (Landmark) and failing to properly consider an alternative offer (Sterling)
  2. 2 How damages should be assessed for loss caused by failure to explore and potentially finalise the Sterling purchase offer

Ratio Decidendi

Mr Senes breached fiduciary duty as a partner by failing to disclose his personal interest in Landmark, rejecting the Sterling offer not based on genuine appraisal but to benefit Landmark, and thereby denying the partnership the opportunity for a potentially more advantageous sale. The breach was material to Jacques’ loss and damages are to be calculated based on a discounted benefit from the Sterling offer minus benefits actually received.

Court Disposition

Judgment for plaintiff against defendants

Orders

  • Defendants to pay plaintiff $60,514 plus interest calculated in accordance with Practice Note SC Gen 16
  • Interest payable from 1 July 1998