COURT RULING THREATENS SUNLAND PROFIT

Written on the 14 September 2012

COURT RULING THREATENS SUNLAND PROFIT

SUNLAND Group’s profit for the last financial year is in danger of being all-but wiped out by a court decision against the company today.

The Victorian Supreme Court awarded special costs against Sunland in its case against developers Matthew Joyce and Angus Reed over a property deal that went wrong.

Sunland had claimed the pair deceptively persuaded it to pay a $14 million “introductory fee” for control of a sought-after plot of waterfront land in the emirate of Dubai in the Middle East.

Justice Clyde Croft dismissed that claim in June.

Today, Justice Croft issued a written ruling in which he found Sunland Group had proceeded with its claim for an “ulterior motive” and “the flaw in the case in this respect must have been readily evident to Sunland at the outset.’’

“Sunland chose to pursue . . . a hopeless case and one which must have been quite evidently hopeless to Sunland itself,’’ Justice Croft wrote in his ruling.

He awarded costs against Sunland, estimated by legal experts to be in the range of $10 million.

Publicly-listed Sunland Group recently recorded a profit of $14 million for FY2011-12.

Justice Croft’s ruling against Sunland Group was highly critical of company founder Soheil Abedian (pictured) and executive David Brown.

Justice Croft says claims were made in order to safeguard the company and its representatives against legal action in Dubai at the expense of Joyce, who has spent three years under house arrest in the United Arab Emirates.

Sunland Group has announced it will appeal Justice Croft's June decision on "extensive grounds", and is considering its options in regards to costs. The company’s share price was down 0.55 per cent to $0.91 late this afternoon.


Latest News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

QUEENSLAND WEATHER UPDATE: MAJOR AIRPORTS STILL IN BUSINESS DESPITE CANCELLATIONS AND DELAYS

DESPITE the storms and flash floods which are continuing to wreak havoc across several Queensland cities and towns...

STARS ALIGN AS GOLD COAST ICON REBRANDS

TODAY marks a shift in the Gold Coast's constellation as the iconic Jupiters Hotel and Casino officially rebra...

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

Related News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter