Court Rules in Favor of Egg Farming Investors: Essential Terms of Contract Agreed Upon

Two plaintiffs invested $6 million in an organic egg-farming venture, claiming they invested under agreements to issue shares to them in the operating and land-holding companies. They also seek units in a unit trust that holds the land where the egg-farming business was established. The court found that although there was no formal contract, the parties agreed on essential terms, and the parties' conduct was consistent with the agreements they had reached. The court ordered the companies to issue and deliver share certificates to the plaintiffs and correct their respective registers to record the correct shareholdings.

The third defendant is also ordered to issue 50 A class units in the Seasons Ranch Unit Trust to each of the plaintiffs and remove any record of the transfer of shares from the fifth defendant to the plaintiffs. The fourth defendant is also ordered to issue 50 fully paid ordinary shares to the plaintiffs and remove any record of the transfer of shares from the fifth defendant to the first plaintiff. The purported transfer of shares by the fifth defendant to the plaintiffs is declared void and of no effect. The orders are stayed for two weeks or until further order of the Court, and there is no order as to costs.