Payout of $ 750k with court order

A BUSINESSMAN will have to pay out $ 750,000 after a lengthy court battle over the splitting of a partnership more than a decade ago.

Justice David North has ordered that Robert William Patrick and his company Patrick & Hansen Pty Ltd pay $ 749,145.04 to Allan John Hansen.

Mr Patrick and Mr Hansen formed a partnership about 1986 under the name of Patrick & Hansen, which became an earthmoving company in 1988.

Mr Hansen claimed that in 2004, he entered into a share sale agreement and a unit sale agreement but that he suffered loss and damage because of misleading contact by Mr Patrick. He claimed Mr Patrick made misrepresentations to him in a meeting at the Rising Sun Hotel in January 2004, including that the demand for land had been “slow” meaning Patrick & Hansen Pty Ltd’s land would have to be held for at least three to five years before it could be sold and that a sale price of Mr Hansen’s share and units would have to reflect the lack of demand.

In delivering his judgment, Justice North said Mr Hansen was “an astute and experienced businessman”.

“He had experience in buying and selling real estate,” he said. “He kept himself abreast of the landholdings, the state of negotiations, the contracts, sales and settlements.

“He was not just a shareholder but also a director of the company with rights of access to all the books and records of the company.”

Justice North said there were no features of influence or vulnerability apparent in the dealings between Mr Hansen and Mr Patrick.

“Nor does the evidence satisfy me that Hansen trusted Patrick,” he said.

“By late 2003, the evidence suggests that relations between them were strained.”

But Justice North did rule that the sum of $ 344,285.84 which was withheld from Mr Hansen at settlement to provide for taxation liability on the sale was wrongfully retained and should be paid out, with interest added.

Justice North reserved his decision on costs, with both parties now able to make submissions.