Reference no: EM133854845

Question

Charlie and Bill decided to jointly develop a commercial property on a vacant site in Wollongong's business district. Both men worked on getting the project going, although Charlie took on the major responsibility for progressing it (just as had been done on another development that the two had undertaken a couple of years before). A month later, Charlie entered into an agreement to buy the vacant site as a trustee for a company yet to be formed. The agreement was conditional upon Charlie getting a commitment from a major retail tenant. Charlie then secured a major department store as an anchor tenant, making the development feasible. Without disclosing anything to Bill, Charlie proceeded to complete the purchase through a company, Very Private Property Ltd (VPP) in which Charlie was the major shareholder. When Bill confronted Charlie with rumours that the project was going ahead without him, Charlie told Bill that he had indeed sold the project because he could not obtain finance for it. Charlie would not give Bill any details of the sale as he said he was bound by a confidentiality agreement (which was untrue). Bill subsequently wrote to Charlie claiming that, as a partner in the project, he was entitled to an account of sale. He received no reply. A month later Charlie admitted to Bill he had continued to participate in a restructured venture, but denied he had ever been in partnership in the development with Bill. The development was completed and continues to be owned by.