In the matter of Hair Industrie Penrith Pty Ltd, Hair Industrie Merrylands Pty Ltd [2015] NSWSC 1578

In the matter of Hair Industrie Penrith Pty Ltd, Hair Industrie Merrylands Pty Ltd [2015] NSWSC 1578

Plaintiff entitled to damages for breach of contract regarding HIP due to defendants’ failure to pay one-third profit as agreed; damages calculated as one-third of adjusted profit less tax, based on best available evidence. Plaintiff’s claim in restitution regarding HIM fails, as there was not a total failure of consideration: some consideration was received in the form of managerial position and profit share for a period.

Parties
Plaintiff: Romona Kraissa; First Defendant: Hair Industrie Penrith Pty Ltd; Second Defendant: Hair Industrie Merrylands Pty Ltd; Third Defendant: Steve Choukair; Fourth Defendant: Mohamad Choukair
Jurisdiction
Australia
Judgment Date
27 October 2015
Procedural Posture
Civil / Principal Judgment
Outcome
Plaintiff partially succeeds; damages awarded against defendants in respect of HIP, restitution claim regarding HIM dismissed.
Legal Topics
Breach of Contract, Damages, Monies Had and Received, Share Acquisition, Director Appointments, Restitution for Failure of Consideration
Contract Law Corporations Law Restitution Breach of Contract Damages Monies Had and Received Share Acquisition Director Appointments +1 more

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Parties

Romona Kraissa

Plaintiff

Hair Industrie Penrith Pty Ltd

First Defendant

Hair Industrie Merrylands Pty Ltd

Second Defendant

Steve Choukair

Third Defendant

Mohamad Choukair

Fourth Defendant

Procedural Posture

Civil / Principal Judgment

Legal Issues

  1. 1 Whether damages for breach of contract are payable to the plaintiff for failure to pay one-third of profits of Hair Industrie Penrith Pty Ltd
  2. 2 Whether the plaintiff is entitled to restitution for total failure of consideration in payments made regarding Hair Industrie Merrylands Pty Ltd

Ratio Decidendi

Plaintiff entitled to damages for breach of contract regarding HIP due to defendants’ failure to pay one-third profit as agreed; damages calculated as one-third of adjusted profit less tax, based on best available evidence. Plaintiff’s claim in restitution regarding HIM fails, as there was not a total failure of consideration: some consideration was received in the form of managerial position and profit share for a period.

Court Disposition

Plaintiff partially succeeds; damages awarded against defendants in respect of HIP, restitution claim regarding HIM dismissed.

Orders

  • Judgment for plaintiff against Messrs Choukair for damages to be calculated in accordance with judgment and interest under s 101 of Civil Procedure Act 2005 (NSW).
  • Plaintiff's claim for restitution regarding HIM dismissed.