Plan B to see Fowler in court
Listed Australian firm Plan B is suing its former key New Zealand ally, Alex Fowler, claiming he breached a 'non solicitation' agreement after splitting from the group last year.
Wednesday, April 8th 2009, 5:37AM
by David Chaplin
Fowler, who merged his Strategic Asset Management (SAM) advisory business with Plan B in 2006, broke away from the group late in 2008 for unspecified reasons.
Plan B claimed Fowler has contacted former clients following his departure from the firm, breaking the 2006 contract between the parties.
In a March 2009 court document it says: “The plaintiff [Plan B] alleges that Mr Fowler has solicited the plaintiff’s clients in breach of [a non-solicitation] clause... and claims injunctive relief as well as damages.”
In December Plan B was granted a temporary injunction against Fowler barring him from contacting former clients.
A hearing has been set down for May 20 this year to deal with the substantive issues.
In September 2006 Plan B paid A$3.65 million, including A$1.17 million in cash and A$2.47 million in scrip, for the remaining 75% of SAM. Plan B originally took a 25% stake in SAM in 2005. In the group's 2008 financial year accounts, SAM was valued at just over A$5 million.
In September 2006 Plan B also bought Rutherford Rede (Northland) for approximately A$2 million, merging it with SAM.
The Plan B accounts for the six months to the end of December 2008 include a $377,000 impairment in goodwill for the New Zealand business.
Fowler told Good Returns the fall-out with Plan B had been a “disappointing experience... we had differences of view”.
Since splitting with Plan B, Fowler has set up a new company which he said would operate under the Strategic Wealth Management banner.
In February this year Plan B took a majority stake in a Melbourne firm, unrelated to Fowler's, called Strategic Financial Management.
Plan B said it was not able to comment on the Fowler court case for legal reasons.
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