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26-10-2009, 09:01 PM
SYDNEY, Oct 26 AAP - Motor racing legend Jack Brabham is
among the parties embroiled in a Federal Court battle linked to a multi-
million-dollar engine technology invented in a South Australian farm shed.
The soured relationship between directors of the company established
to market the technology has resulted in a civil action over alleged
breaches of contract and subsequent cross-claims.
Federal Court Justice Jayne Jagot on Monday was told the
revolutionary technology was valued at an estimated $US1.4 trillion.
It would replace the valve system of a conventional engine with an
additional four overhead pistons, the court was told.
SA farmer and inventor Malcolm John Beare, 58, created the technology
after 20 years of tinkering in the machinery shed of his property.
He built two prototypes of the engine, in a Yamaha and a Ducati
motorcycle, his barrister Susan Gatford said.
After Mr Beare showcased the invention in Germany in 2001, he was
approached by Gold Coast businessman Alan Casey, who offered financial
assistance to patent and market the technology in return for a 50/50
share in a proposed company.
Sir Jack Brabham, a friend of Mr Casey, was offered shares in the
company - Jack Brabham Engines Ltd - in return for giving it his name.
A 19-page statement of claim lodged by applicants Mr Casey, his wife
Gail Casey, and Sir Jack, outlines various allegations against five
respondents, including Mr Beare and potential investor, Melbourne car
dealer Stylanios Eleftheriadis.
"This case involves ... corporate greed and predatory behaviour,"
said Peter King, barrister for the Caseys and Sir Jack.
"The facts, extending over several years, are complex, but the
unrelenting conduct of (respondents) ... has brought a company with
great potential to its knees."
The formation of Jack Brabham Engines Ltd in 2001 required Mr Beare
to hand over rights to the patents of his technology to the company.
However, the applicants claim Mr Beare tried to benefit personally by
marketing the technology as his own during a 2005 trip to India.
A string of financial disagreements between the parties ensued,
resulting in Mr Beare's resignation as director of the company in
November 2005.
In 2006, Mr Beare repossessed the prototype motorcycles, but the
company then informed shareholders the patents for the technology would
be sold.
The civil action brought by the Caseys and Sir Jack claims Mr Beare
attempted to use the technology for his sole benefit, and that together
with his supporter Mr Eleftheriadis he set out to "destroy" the company.
It is also claimed Mr Eleftheriadis made personal threats to the
applicants.
"It's part of our case that Mr Eleftheriadis approached Sir Jack and
we say ... he then commenced to vilify Sir Jack and his wife on internet
sites, the details of which will be brought before the court," Mr King
told the court.
The matter continues, with Sir Jack among those expected to give
evidence.
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among the parties embroiled in a Federal Court battle linked to a multi-
million-dollar engine technology invented in a South Australian farm shed.
The soured relationship between directors of the company established
to market the technology has resulted in a civil action over alleged
breaches of contract and subsequent cross-claims.
Federal Court Justice Jayne Jagot on Monday was told the
revolutionary technology was valued at an estimated $US1.4 trillion.
It would replace the valve system of a conventional engine with an
additional four overhead pistons, the court was told.
SA farmer and inventor Malcolm John Beare, 58, created the technology
after 20 years of tinkering in the machinery shed of his property.
He built two prototypes of the engine, in a Yamaha and a Ducati
motorcycle, his barrister Susan Gatford said.
After Mr Beare showcased the invention in Germany in 2001, he was
approached by Gold Coast businessman Alan Casey, who offered financial
assistance to patent and market the technology in return for a 50/50
share in a proposed company.
Sir Jack Brabham, a friend of Mr Casey, was offered shares in the
company - Jack Brabham Engines Ltd - in return for giving it his name.
A 19-page statement of claim lodged by applicants Mr Casey, his wife
Gail Casey, and Sir Jack, outlines various allegations against five
respondents, including Mr Beare and potential investor, Melbourne car
dealer Stylanios Eleftheriadis.
"This case involves ... corporate greed and predatory behaviour,"
said Peter King, barrister for the Caseys and Sir Jack.
"The facts, extending over several years, are complex, but the
unrelenting conduct of (respondents) ... has brought a company with
great potential to its knees."
The formation of Jack Brabham Engines Ltd in 2001 required Mr Beare
to hand over rights to the patents of his technology to the company.
However, the applicants claim Mr Beare tried to benefit personally by
marketing the technology as his own during a 2005 trip to India.
A string of financial disagreements between the parties ensued,
resulting in Mr Beare's resignation as director of the company in
November 2005.
In 2006, Mr Beare repossessed the prototype motorcycles, but the
company then informed shareholders the patents for the technology would
be sold.
The civil action brought by the Caseys and Sir Jack claims Mr Beare
attempted to use the technology for his sole benefit, and that together
with his supporter Mr Eleftheriadis he set out to "destroy" the company.
It is also claimed Mr Eleftheriadis made personal threats to the
applicants.
"It's part of our case that Mr Eleftheriadis approached Sir Jack and
we say ... he then commenced to vilify Sir Jack and his wife on internet
sites, the details of which will be brought before the court," Mr King
told the court.
The matter continues, with Sir Jack among those expected to give
evidence.
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