Quarry owners butt heads over broken development plan

THE owners of the failed Broken Head quarry development site are in a legal stoush with each other over financial documents.

James Hirshman and Stuart Dixon-Smith agreed they would share any profits earned from developing the western and quarry sections of the land, while Mr Dixon-Smith would keep profits from the eastern portion.

Those hopes were dashed when the New South Wales Land and Environment Court earlier this month upheld a previous decision to refuse the quarry's subdivision into 41 lots.

By March 2012, the venture had racked up a $2.9 million debt.

Mr Hirshman claimed Mr Dixon-Smith oversaw the transfer of money to repay the debt and also brought in third parties, to which he gave shares.

Mr Hirshman said his attempts to learn about the reasons and structure of those payments had gone unanswered.

He has taken his business partner to the Supreme Court in an effort to get access to documents that may hold the explanations he is seeking, and perhaps seek further legal options.

"As will be seen, the defendants have not absolutely resisted the plaintiffs' claim," NSW Supreme Court Justice Stephen Robb said.

"They have agreed to give some discovery, they have agreed to give discovery of other categories sought by the plaintiffs, provided the description of the categories is revised, and they have declined to give discovery of other categories."

Justice Robb said it was still uncertain whether the new information Mr Hirshman sought would be relevant.

"It would be too extreme to describe the plaintiffs' present application as being mere fishing," he said.

"However, it is a real possibility that the suspicion that the new information has engendered in the plaintiffs' minds might be illusory."

The business partners have been called to provide directions for how they want the case to proceed. -APN NEWSDESK

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