A FAILED commercial relationship between a Mackay builder and a Lennox Heads development administrator, who are disputing a portion of the $3 million profit they made together, will now go to a special referee.
Michael Arthurs, and his building business MJ Arthurs, built turn-key house and land packages for Optima Homes (Australia) in the Mackay area.
Shaun Davison, from Portfolio Housing, sourced 86 clients to invest in those packages and performed administration services related to them.
They have lodged separate claims about money they believe is owed after they had "a falling out" and terminated their partnership on November 19, 2012.
The disagreement also relates to incomplete or unsettled houses in the Mackay project.
Justice Martin Daubney handed down a decision last week relating to when Mr Davison became entitled to a share of the profits.
Mr Arthurs had argued the parties' respective rights to receive a share in the profits only arose when the profits crystallised following house construction.
Justice Daubney said he believed Mr Davison's right to share equally in any net profits arose upon fulfilling his obligations and, in effect, presenting a building contract for Mr Arthurs to execute.
"Any such rights which had accrued prior to the act of termination on November 19, 2012 were not then vitiated," he said.
Justice Daubney said, in his judgment, he must determine which houses in the Mackay project would be subject to an agreed profit share formula.
He ultimately excluded nine out of 13 homes from the profit share determination - mostly because Mr Davison could not prove he had completed all work required to procure the contact before the partnership termination.
A special referee will now assess money due to each party after applying an agreed profit share formula.
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