Sale of High Value Multiple Franchised Business

Prior to engaging George Maggiotto

My client was a contractor who was in dispute with their principal contractor for terminating a high value service contract in the mining industry, without compensation for early termination.

Our role

After issuing a customised letter of demand stating that the contract had been repudiated, adequate compensation could be achieved through the principal contractor purchasing my client’s business for the value of the remaining term of the contract. Negotiations broke down and our client issued instructions to file a claim in the Supreme Court of New South Wales.

Our own due diligence identified that the value of the lost contract including options, at a time when the product was achieving record prices, allowed us to claim an amount of five times the initial request for sale of the business.

There were several hurdles to overcome in the matter including dealing with an order for discovery which produced close to 40,000 documents. The process of complying with and reviewing the produced documents took nine (9) months to complete. The opposing side also incessantly used strategies and tactics throughout the pre-trial processes to try and test my client’s resolve to continue with the proceedings.

Outcome

We went to great lengths to try and negotiate an outcome throughout the 2 years the matter ran, however it was eventually set down for hearing to be heard over a four-week period. The matter ran for the full four weeks with multiple witnesses called to give evidence. After the last witness gave their evidence the judge, before leaving the bench to consider his decision, gave his summations and encouraged the parties to again engage in further negotiations in an attempt to settle the matter.

The parties took this opportunity while waiting for the judge to engage in further negotiations which resulted in the matter settling. The client was happy that he had received compensation for the termination of the contract to the value of the initial sale price.

Attention to detail, strong negotiating skills with a focus on settlement and a commitment to achieving an outcome for my client was essential to a successful outcome in this strenuously contested matter.