Apartment development dispute
Background
Our client represented a property developer who was being sued in High Court proceedings by their business partner for just under $18 million.
Discovery snapshot
Approximately 2,000 documents
Team of three first level reviewers, with a Senior Associate assisting with second level review.
Discovery completed over 3 weeks.
Proceedings
The defendant initially set up a company (The Company) for the purpose of an apartment development (Development Project).
The defendant needed funding for the Development Project. One of the plaintiffs agreed to provide lending throughout.
The plaintiffs allege that there was an oral agreement in relation to the funding, which would impact the shareholding of the company. They allege that the defendant breached that agreement and registered shareholding inconsistent with the agreement.
Eventually, the defendant restructured the company by setting up a new company (The Second Company). Solicitors were engaged to prepare restructure documents (essentially, a shareholders agreement, a constitution and various loan agreements).
Further funding was obtained, with that loan eventually being refinanced with a bank. The Company subsequently defaulted on its loan with the Bank.
On 11 October 2023, the plaintiffs commenced proceedings to liquidate The Second Company. On 30 October 2023, the defendant resolved to appoint liquidators in relation to both companies. The Bank then sold the Development Project apartments to a Trust Company.
The plaintiffs pleaded five causes of actions – the first is for contravention of the Financial Markets Conduct Act 2013 for failing to provide a product disclosure statement. The remaining four are various alleged breaches of director duties.
“Discovery Specialists made managing discovery straightforward and efficient. Their ability to step in quickly with document listing and review support meant the process kept moving smoothly, even when resources were stretched.
Pricing was competitive and easy to track, and Relativity proved to be an intuitive and powerful platform for reviewing large volumes of documents.
The Anthony Harper team was professional, responsive and a pleasure to work with. I would definitely use Discovery Specialists again; they provide the flexibility and expertise that makes complex proceedings far easier to manage”
Discovery steps
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Initial discovery documents provided
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Aproximately 2,000 documents reviewed
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Item description
