Cairnsmore Holdings Pty Ltd v Bearsden Holdings Pty Ltd (No. 2) [2007] FCA 2060

Cairnsmore Holdings Pty Ltd v Bearsden Holdings Pty Ltd (No. 2) [2007] FCA 2060

Judgment was entered for the applicants as the expenses were recoverable only to the extent above $194,000 and costs were to be paid on an indemnity basis under the Sale of Business Agreement, with no stay of execution granted.

Parties
First Applicant: Cairnsmore Holdings Pty Ltd (ACN 109 826 404) as Trustee for the Cairnsmore Trust; Second Applicant: Vernon Howland; First Respondent: Bearsden Holdings Pty Ltd (ACN 002 836 133); Second Respondent: James Pearson Hodge
Jurisdiction
Australia
Judgment Date
20 December 2007
Procedural Posture
Civil / Final Judgment; Post Judgment Orders
Outcome
Judgment for first applicant against first respondent for $727,898.03; judgment for applicants against both respondents for $351,835.00 plus interest; no stay of execution; prior order vacated.
Legal Topics
Sale of Business, Indemnity Costs, Stay of Execution, Expenditure Adjustment
Commercial Law Sale of Business Indemnity Costs Stay of Execution Expenditure Adjustment

Case Brief

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Parties

Cairnsmore Holdings Pty Ltd (ACN 109 826 404) as Trustee for the Cairnsmore Trust

First Applicant

Vernon Howland

Second Applicant

Bearsden Holdings Pty Ltd (ACN 002 836 133)

First Respondent

James Pearson Hodge

Second Respondent

Procedural Posture

Civil / Final Judgment; Post Judgment Orders

Legal Issues

  1. 1 Whether costs should be paid on an indemnity basis under the Sale of Business Agreement
  2. 2 Whether Cairnsmore's claim for expenditure should be reduced by $194,000
  3. 3 Whether a stay of execution should be granted

Ratio Decidendi

Judgment was entered for the applicants as the expenses were recoverable only to the extent above $194,000 and costs were to be paid on an indemnity basis under the Sale of Business Agreement, with no stay of execution granted.

Court Disposition

Judgment for first applicant against first respondent for $727,898.03; judgment for applicants against both respondents for $351,835.00 plus interest; no stay of execution; prior order vacated.

Orders

  • Judgment for the first applicant against the first respondent for $727,898.03.
  • Judgment for the applicants against the first and second respondents in the sum of $351,835.00 plus interest from 16 July 2005 to date pursuant to Schedule 5 of the Uniform Civil Procedure Rules 2005 (NSW).