NZX claims round one of legal fight
The legal action resulted from an alleged breach of the sale and purchase agreement that was signed as part of the Clear purchase.
NZX's case against two of its former Australian employees will go ahead in New Zealand.
In a reserved decision released overnight, Justice Warwick Gendall ruled that not only did Grant Thomas and Dominic Pym, and related entities, have a case to answer, but that it should be heard in New Zealand.
The decision followed a one-day hearing in the Wellington High Court last week.
At that hearing, Justice Gendall heard that NZX sought damages from the two men and the related entities, as a result of NZX's purchase of the Clear grain exchange in 2009. The men were the former owners of Clear.
The legal action resulted from an alleged breach of the sale and purchase agreement that was signed as part of the Clear purchase.
The men rejected the argument that there was a case to answer and, if there was, that it should be heard in New Zealand, rather than Victoria.
Since the sale of Clear the relationship between the New Zealand stock exchange operator and the two men has turned sour, with the parties running legal action against the other on both sides of the Tasman.
In his ruling Justice Gendall said there were clearly serious issues that needed to be tried on their merits.
He also said NZX had a contractual right to bring proceedings in New Zealand.
The stage is now set for the next round of the battle.
Messurs Thomas and Pym have 30 days to file their statements of defence of the charges alleged by NZX.
Following that, the first case management conference by telephone is to be held within 35 working days of the filing of those statements, Justice Gendall ruled.
Colin Williscroft
Wed, 23 Nov 2011
Wed, 23 Nov 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZX claims round one of legal fight
17969