'Nil all draw' in NZX vs Ralec case

NZX chief executive Tim Bennett

Jenny Ruth on the Ralec NZX decision...all 172 pages of it.

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The judgment in the NZX vs Ralec case is in and effectively nobody won.

In a press release accompanying the judgment by Justice Robert Dobson, the High Court says he upheld four of five claims alleging misrepresentation stock exchange operator NZX made against Ralec, the company which sold it the Australian Clear Grain Exchange in 2009.

But Justice Dobson also upheld Ralec’s claim that NZX hadn’t met its contractual obligations is providing sufficient resources.

However, he awarded no compensation or damages to either side.

NZX couldn’t demonstrate any losses flowing from it relying on the misrepresentations and neither could Ralec demonstrate that better resourcing would have meant the vendors would have been able to meet their earn-out targets, the judge said.

NZX has previously said it spent about $10 million on the case which began in 2011.

Justice Dobson also says his provisional view is that costs ought to lie where they fall, given the outcome on damages is in the nature of a “nil all draw.”

RAW DATA: The full judgment (PDF)


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Smart judge. From all accounts there was no way for either side to prove their consequential losses.

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King Pyrrhus of Epirus would be impressed.

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“NZX had hoped that a settlement before the trial would be possible, which would have saved all parties considerable resources, including the court.”

Still spinning like a punch drunk monopoly lost in a fee increase free fog - NZX obviously forgot it was the one to initiate legal action against Ralec.

So $10m spent and nothing to show.

But the market and the world obtained extremely valuable insights into how NZX was run (grossly mismanaged) by wunderkid with the collusion of a self-interested sleeping Board with no clue what was happening.

So thanks, NZX.

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So glad they are in charge of our capital markets

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What a complete waste of shareholder money - $10m in legal costs with a very limited upside. Seems like Weldon's ego drove this past the point of no return but where was the board keeping this situation in check?

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Weldon was and is a commercial hazard. Look at the companies hes been involved with. As regards his style he is a graduate of the KGB School of Charm and Deportment with Oak Leave Cluster.

And the last word with several letters added ( you can do this) sums him up to a tee.

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The word parallel universe comes to mind when it comes to the clowns at the NZX.

NZX ExChairman Chris Harmos speaking on behalf of the Board and himself had this to say about wunderkid:

“Mark has effectively been founder, as well as leader, of NZX, as we now know it, since 2002. Under his stewardship, NZX has grown from a small and threatened mutual exchange to a thriving information, markets and infrastructure business, with a range of integrated business lines, a healthy balance sheet and a valuable set of options for future growth."

“Following the successful execution of NZX’s second five-year strategic plan, Mark has indicated that the time is now right for him to leave the company. The Board respects his decision. We have been privileged to have someone with that amount of talent, energy and commitment as the driving force behind NZX’s first critical decade."

Be one big gigantic joke but for the fact that these clowns were/are in charge of one of the pillars of NZ's capital market.

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Chris Harmos?
Don't think you should be calling anyone a clown.

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'Nil all draw'?? More like a minus $10m all draw.

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