Canberra court finds obstruction of $500,000 claim — ABC News Australia
The Supreme Court of the Australian Capital Territory in Canberra found that lawyers Benjamin Aulich and Peter Woodhouse took steps to prevent former partner Erin Taylor from pursuing contractually stipulated payments of $500,000 for her stake in the law firm Aulich Civil Law. This was reported by ABC News Australia.
Dispute over stake in the firm
In 2019, Taylor purchased 25% of the firm's shares for $500,000. She went to court, stating that under the agreement she was entitled to a refund or a buyback of her stake because she left the firm less than five years after purchasing the shares.
In a decision published this month, acting Justice Audrey Balla found that Woodhouse and Aulich had “embarked on a campaign” to deter Taylor from pursuing her contractual rights. The court found that they did not respond to her repeated direct requests about how and when the money would be paid.
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Delayed payments and voluntary administration
In particular, Woodhouse blocked Taylor from contacting him via mobile phone and later decided to block her further emails to the firm. The court also found that Woodhouse and Aulich deliberately delayed paying Taylor her outstanding leave entitlements as part of a strategy of ignoring her demands for a buyback of her stake.
In September 2024, Woodhouse initiated voluntary administration proceedings for the firm. Justice Balla found that this was done so that Woodhouse and Aulich could gain an advantage in the litigation. Before that, the personal relationship between Taylor and Aulich, which had lasted more than five years, ended, while professional relations between the three partners became strained.
The court found that Aulich and Woodhouse breached the agreement by failing to buy back Taylor's shares, which was to take place within one month of her last working day. The court also found oppression and breaches of their statutory and fiduciary duties. The court will determine the orders in the case and the issue of legal costs later.
