Australia, Aug. 26 -- New South Wales Land and Environment Court issued text of the following judgement on July 25:

1. BELL CJ: I have had the benefit of reading the reasons of McHugh JA. I agree with those reasons and the orders his Honour proposes.

2. ADAMSON JA: I agree with McHugh JA.

3. McHUGH JA: This appeal raises two issues: the scope of the rule in Browne v Dunn and the evidence necessary to establish what is fair and reasonable remuneration for the purposes of a claim in quantum meruit. No error has been shown in the comprehensive reasons for judgment of the primary judge, Waugh SC DCJ, of 8 November 2024 (H.C. Loneragan & Company Pty Limited as trustee for the Loneragan Family Trust trading as Quantum Forensic Solutions v Locke [2024] NSWDC 525). The appeal should be dismissed.

Background

4. The appellant, Mr Brian Locke, was until 8 December 2017 a director of Gold and Copper Resources Pty Ltd (GCR), a company which he had founded and of which he had been the managing director and chief executive officer from 31 May 2007 until 11 September 2017. He was also a major shareholder.

5. On 14 October 2017, Mr Ken Lowe, the then chairman of GCR, sent Mr Locke an email seeking an explanation of "what the board considers spending discrepancies" which totalled about $3.1 million. The email was copied to other directors of GCR, including Mr Peter Coates, who was the chair of a sub-committee of GCR's board recently formed to investigate the allegations made against Mr Locke. Central to the investigation were expenses incurred on Mr Locke's wife's credit card which had then been reimbursed by GCR.

6. Axiom Forensics Pty Ltd (Axiom), forensic accountants, had been appointed by GCR. On 2 November 2017, Axiom wrote to Mr Locke seeking certain information relating to the allegations against him.

7. On 12 November 2017 Mr Locke sent Mr Coates an email, which he forwarded a few minutes later to Mr Robert Mangioni (a solicitor), copying Mr Hugo Loneragan (a forensic accountant who was the sole director and shareholder of the respondent (QFS or Quantum Forensics)) and Mr Andrew Ponnambalam (a solicitor at Watson Mangioni). Mr Locke's email to Mr Coates included the following statements:

"Given the seriousness of the allegations being made, you will also not be surprised to learn that I have now retained a legal adviser (Robert Mangioni of Watson Mangioni) and a forensic accountant (Hugo Loneragan of Quantum Forensics).

I have been asked to provide documents and explanations for transactions which, in some cases, go back to 2009. I have been given 2 weeks to provide that information. That time period is patently unreasonable. ...

...

In these circumstances, I propose to respond to the request for information that has been made by working with Quantum Forensics to have them produce a report in response to all relevant matters. Given the number of years to address, and the detail required to address each matter, I anticipate that that will take at least a number of weeks. Once available, I'll provide that report to you. You can assess what matters you then wish to take further, and how. I have nothing to hide in this. If the process that follows is a fair one, I will cooperate fully."

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1983b160d6867a33af6b2a2b)

Disclaimer: Curated by HT Syndication.