Saxby Bridhe wins court battle
Financial services group Saxby Bridge Property and Finance has defeated a company in which it holds a minority stake, in a courtroom battle over a number of issues including the referral of mortgage business.
Financial services group Saxby Bridge Property and Finance has defeated a company in which it holds a minority stake, in a courtroom battle over a number of issues including the referral of mortgage business.
Saxby Bridge Property and Finance (“Saxby Bridge”) was successful in defending a claim brought by Saxby Bridge Mortgages (SBM) seeking to force Saxby Bridge plan-ners to refer SBM mortgages. Saxby Bridge currently has a 20 per cent stake in SBM.
SBM claimed there was a contractual obligation and fiduciary duty between the two groups in which Saxby Bridge was to refer business to SBM. The NSW Supreme Court found that SBM failed to establish that neither existed. The proceedings were dismissed and SBM was ordered to pay the costs of Saxby Bridge.
Saxby Bridge also brought legal action against SBM, successfully claiming as a minority shareholder that the affairs of SBM were being conducted in a manner which was oppres-sive to Saxby Bridge. The Court ordered, SBM’s managing director and majority share-holder, Brett Kingston to purchase Saxby Bridge’s 20 per cent share of SBM and also pay court costs.
Saxby Bridge group managing director, Ilias Stoikos says the group had referred part of its mortgage business to the company for three years.
“For a long while they were one of our major referrals until we decided to direct business elsewhere. We felt there were better opportunities for our clients through others” Stoikos says.
“We were unhappy with the direction and management (of SBM) and were not privy to important information.”
SBM had placed an interim injunction in November last year preventing Saxby Bridge from referring existing mortgage business to other providers. The Court dissolved that injunction.
“This was an area of real concern as cheaper rates were available and we sought to do the best thing by our clients,” Stoikos says.
Saxby Bridge has the option of pursuing a damages claim in relation to the injunction and is currently seeking legal advice.
AUTHOR
Jason Spits
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