Suing his brother alleging he welshed on an agreement not to go into competition, Mathew Colville is in court seeking detail of what he claims is his brother’s backdoor buy into a rival building franchise disguised as a personal loan.
Mathew Collville bought out his brother Adam’s share of their West Coast GJ Gardiner housing franchise. Adam agreed not to set up in competition; a common commercial arrangement justified as protecting the existing business’ customer base.
Mathew alleges brother Adam then turned around and bought into a West Coast Stonewood Homes franchise at a cost of $200,000, in breach of their agreed restraint of trade. This involved doing a deal with Stonewood’s new West Coast franchise holder Peter Bright, Mathew alleges. Mr Bright is resisting disclosure of any deal.
Adam says payment of $200,000 was a personal loan from him to Peter Bright. Meanwhile Stonewood Homes publicity material in June 2021 proclaimed its delight in welcoming both Peter Bright and Adam Colville as Stonewood’s ‘newest’ franchise holders.
In the High Court, Associate judge Lester ordered Mr Bright to disclose any documents concerning financial details of Adam’s involvement in Stonewood Homes. Disclosure of computer records was also ordered.
Colville v. Colville – High Court (24.03.23)
23.036