A legal battle among prominent ACT lawyers has resulted in a Federal Court decision awarding a significant sum to a woman involved in a complex share dispute. This case, centered around shares in two companies founded by Ben Aulich, has revealed a fascinating and controversial story.
The Fall of Two Companies and a Woman's Fight for Justice
Initially, Aulich Civil Law (ACL) and Aulich Property Trading (APT) each issued 100 shares, with Joanna Scott, wife of barrister Jack Pappas, holding 25% of the shares. The court's ruling highlighted how the value of these shares plummeted from a substantial $500,000 to a mere $494, a drastic change that sparked a legal battle.
But here's where it gets controversial: as the pandemic loomed, the firm's principals, including Ben Aulich, made a decision that would impact the value of Joanna Scott's shares. Relations between Aulich and Pappas had soured, and at the time of the new share issue, Ms. Scott wanted to sell her shares.
Justice Angus Stewart ruled that the new share issue caused Ms. Scott's holding to drop significantly, and he rejected the idea that the demise of the companies was an intervening event that ended her claim.
"She bears no responsibility for what has happened to the Aulich companies," Justice Stewart stated, emphasizing that Ms. Scott's intention was to sell her interest, and the companies' liquidation should not impact her claim.
And this is the part most people miss: the judge ruled that Ms. Scott should be compensated $500,000 for her shares in Aulich Civil Law, plus additional compensation for her stake in Aulich Property Trading.
The case raises questions about the responsibilities of shareholders and the impact of personal relationships on business decisions. What do you think? Is this a fair outcome, or does it set a concerning precedent? We'd love to hear your thoughts in the comments!
