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Can KDR/ASIC prevent MZN profiteering from this legal saga?, page-109

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1,743 Posts.

17/05/17

13:03

Post #: 24742482
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Originally posted by mainholm ↑

Yep, as I posted from day 1 of this saga MZN are full of rat smell or words to that effect.

Anyway, this whole saga is progressing as I anticipated. Seen/read/studied plenty of similar sagas like this before. To recap:

The argument is not about contract law per se. It is about equity law. First, it seems obvious that there is no contract because if there was it would have been announced as per the law and the supporting regulations. Therefore, it seems that the argument is whether KDR has treated MZN fairly......... in accordance with the eyes of the Law of Equity.

It looks like the basis of the case is whether there was an agreement to make a formal agreement (aka HOA) to make a contract for the sale of the lithium rights.

That action needs to be proved first and foremost. If there was, then the case will revolve around the conduct and actions of the parties involved and how they acted with regard to good faith and proper practice aka fairness/equitable conduct/laches/clean hands amongst others.

IMHO the MZN angle was aiming to get some form of settlement from KDR. They seem to have waited before commencing action until KDR looked to be vulnerable in the eyes of the market thus hoping this external market pressure would help bring KDR to their knees.

Alas, it seems that the MZN 'hail mary shot' was way off aim because the events that have unfolded since indicate that MZN's legal arguments are weak....... hence no settlement by KDR. Or otherwise MZN continue to display stupidity in seeking an outrageous settlement or something like that!

Personally I thought MZN were always in a very weak position from day one. Extremely weak when the doctine of "clean hands" and "laches" is considered as a form of defence by KDR. When the basis of the case is whether there was an "agreement to make a formal agreement (aka HOA) to make a contract" there is always plenty of 'get out of jail' options, contract clauses, and legal doctrines that could/would/should be considered or included in such a process of agreements that seldom favour the plaintiff in these disputes. The arguments are not complicated but they can easily become complex depending on who the parties engage as legal representatives. Complexity just clouds the essence of the law and that is why we have Courts to arbitrate such disputes and arguments.

Bottom line.......... the longer this dispute went without settlement the worse it looked for MZN. Actions by KDR to fast track this into Court was instructive that KDR held the upper hand of the law. IMHO it will be extremely long odds for MZN chances in Court. If they are stupid enough to go into Court then my prediction is goodbye MZN and pity the shareholders left standing after such an event.

All my opinion and dyor to form your own.

Cheers

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Good comment, I agree that the law of equity is a grey area here. However, one of the main principles of equity is that 'those seeking equity must do equity' or 'must come with clean hands'. Wonder how MZN will argue its case..

Personal opinion, DYOR etc

KDR Price at posting: 43.5¢ Sentiment: Buy Disclosure: Held
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