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'Nil all draw' in NZX vs Ralec case

Wellington High Court judge Justice Robert Dobson upheld four of five claims stock exchange operator NZX made against Ralec

Jenny Ruth
Wed, 16 Nov 2016

The judgment in the NZX vs Ralec case is in and effectively nobody won.

In a press release accompanying the judgment by Justice Robert Dobson, the High Court says he upheld four of five claims alleging misrepresentation stock exchange operator NZX made against Ralec, the company which sold it the Australian Clear Grain Exchange in 2009.

But Justice Dobson also upheld Ralec’s claim that NZX hadn’t met its contractual obligations is providing sufficient resources.

However, he awarded no compensation or damages to either side.

NZX couldn’t demonstrate any losses flowing from it relying on the misrepresentations and neither could Ralec demonstrate that better resourcing would have meant the vendors would have been able to meet their earn-out targets, the judge said.

NZX has previously said it spent about $10 million on the case which began in 2011.

Justice Dobson also says his provisional view is that costs ought to lie where they fall, given the outcome on damages is in the nature of a “nil all draw.”

RAW DATA: The full judgment (PDF)

Jenny Ruth
Wed, 16 Nov 2016
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'Nil all draw' in NZX vs Ralec case
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