Question
Raj's family had been in the marble quarrying and processing business, through their company 'Glory Days Pty Ltd', for the last two centuries. Raj did
Raj's family had been in the marble quarrying and processing business, through their company 'Glory Days Pty Ltd', for the last two centuries. Raj did not have any children of his own but had a niece named Vidya who was like a daughter to Raj and his wife Rita. Rita was a GP who did not have much to do with Glory Days personally. Vidya had worked for Glory Days since she was a youth and had become quite knowledgeable in the marble business. Vidya had just celebrated her 30thbirthday with a large party where the extended family had travelled from abroad to attend. Raj had turned 75 a week after Vidya's birthday. A few weeks following Vidya's birthday, Raj asked to meet her at the local winery for a meal. Over lunch, he told her that he made a very good living out of Glory Days and he did not have any regrets in his life. Raj praised Vidya's prowess in the marble industry and told her that despite her young age, she had earned the respect of leaders in the marble sector due to her commitment and professionalism. This was music to Vidya's ears.
She was excited to hear what Raj would say next as she could sense that he was about to reveal something which would be rewarding for her. Raj finally said, he would like to transfer his 100% shareholding in Glory Days to Vidya and make her CEO. However, there would be conditions. First, Raj would remain on the board of Glory Days until he chose to resign - Vidya would be appointed as CEO. Second, Vidya had to consult Raj on all senior staff appointments to Glory Days. Third, Raj would retain all his shares in Glory Days, but would transfer them to Vidya under his will. Fourth, Vidya would promise to provide reasonable care and support for Raj and Rita for as long as they lived so that they did not have to move to a retirement home. Vidya thought she won the lottery and immediately agreed, thanking Raj for his generosity. She assured him that she would continue the business and make him proud of his decision to transfer Glory Days to her. The two of them agreed on the four terms and shook hands over the deal.
Twelve months after the agreement, Vidya met and married someone in less than four weeks. Dismayed by Vidya's poor judgment (and choice of partner) Raj changed his will to leave Glory Days to Rita. Raj and the board (that is, Raj and Rita by majority) have also demoted Vidya to COO rather than CEO. Upset by the breach in the relationship Vidya refused to visit Raj and Rita for the next three years. She continued to work as COO but was chilly to Raj in meetings. Raj and Rita did not make an effort to repair the relationship either. Two years after that Vidya was divorced by her partner and upset that Raj and Rita did not reach out to support her. She then sued Raj.
In the mean time Raj has promised a large charity that he will leave all his property to them under his will.
- (a) What is Vidya's most appropriate cause/s of action?
- (b) What is Vidya's most appropriate remedy would be if she litigated the matter and her likelihood of success?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started