Nearly three decades of co-operation running charter cruises in the Bay of Islands, Fiji and Queensland comes to an end with Peter Murphy playing hardball against former business partners Roger Dold and Chris Jacobs following their $A112 million sale of Cruise Whitsundays Pty Ltd.
In 2016, the three cashed up their Whitsunday operations after previously operating Fullers cruises in Northland and South Seas cruises in Fiji. Their respective shares in Cruise Whitsundays were Dold (46.9 per cent), Jacobs (46.9 per cent) and Murphy (6.2 per cent). Initial intentions were to divvy up the proceeds in ratio of their shareholdings. The High Court was told Mr Murphy then refused to sign off on the Whitsunday sale unless given an extra $A5 million. Held to ransom, Messrs Dold and Jacobs bargained this down to $A4 million with each contributing two million. Mr Murphy said he was entitled to extra for his work on the Whitsunday operations. Revenge was quick. Messrs Dold and Jacobs sued to recover their four million. They argue payment was in breach of their private shareholders’ agreement. Mr Murphy countered. He alleges Messrs Dold and Jacobs ran down the Whitsunday business prior to sale by appointing an incompetent chief executive officer and by installing a new reservation system which did not work properly resulting in lost revenue. He alleges failures to properly invoice led to accumulated losses of over $A22 million. Litigation has become bogged down in voluminous requests by Mr Murphy for production of documents. Associate judge Bell indicated Mr Murphy had been unco-operative when lawyers for Messrs Dold and Jacobs tried to sort out informally what extra information he needed. Judge Bell said some of the information Mr Murphy wanted produced in court for inspection was in documents he already had access to. Judge Bell did order disclosure by Messrs Dold and Jacobs of any documents bearing on increased costs incurred because of problems with reservations software and with actions of the chief executive dismissed for incompetence.
The High Court was told Mr Murphy has a legal background. Messrs Dold and Jacobs say they had relied on him for legal advice and guidance. The disputed facts surrounding their bust-up is yet to go to a hearing. Mr Murphy alleges Mr Dold and Mr Jacobs were so heartily sick of each other that after he put the squeeze on they were willing to pay two million each to sever their ties.
Dold v. Murphy – High Court (9.05.18)
18.100