Calliden Group’s legal stoush with Australian Unity ended last week with a court finding Australian Unity breached the terms of a sale agreement between the companies.

Following its July 2007 purchase of Australian Unity’s general insurance business, Calliden alleged that Australian Unity had breached the terms of a share sale deed which provided for an adjustment to the purchase price on completion having regard to the estimated value of the relevant insurance liabilities at that time.

This claim was upheld last week by Justice Einstein in the NSW Supreme Court.

Although Justice Einstein has not yet determined the correct adjustment of the purchase price and the costs attributable to parties – that will be decided at a final hearing this week – Calliden says its actuarial advice is that Australian Unity will have to refund $3-4 million of the $62.5 million purchase price.

Calliden CEO Nick Kirk is reluctant to discuss the verdict, beyond saying the company is happy with the result.

“We are of course extremely pleased with this outcome which vindicates the action that we commenced in early 2008,” he says.

“We do not consider it is appropriate to comment further with respect to the judgement or the case generally, due to the fact that there are still numerous issues that need to be worked through before the matter is brought to a close.”