Federal Court Orders Keybridge to Pay 50% of Director’s Legal Expenses
Bentley Capital is seeking to recover 50% of legal costs from Keybridge Capital following a Federal Court ruling related to director William Johnson’s litigation expenses. Settlement talks are underway as the exact amount awaits judicial assessment.
- Federal Court orders Keybridge to pay 50% of William Johnson’s legal costs
- Bentley indemnified Johnson for approximately $720,000 in legal expenses
- Legal cost quantum to be determined by a Judicial Registrar
- Bentley and Keybridge engaged in settlement discussions
- Next Federal Court hearing scheduled for 19 November 2025
Background of the Legal Dispute
Bentley Capital Limited (ASX – BEL) has been embroiled in a protracted legal battle with Keybridge Capital Limited (ASX – KBC) that dates back to 2019. The dispute centers on legal costs incurred by William Johnson, a former director of both companies, during Federal Court proceedings. Johnson served on Keybridge’s board from July 2016 until April 2020, a period during which Bentley was a major shareholder of Keybridge and had appointed Johnson as its nominee director.
Court Rulings and Financial Implications
In a series of judgments culminating in a September 2024 ruling, the Federal Court declared that Keybridge must contribute equitably to Bentley for 50% of Johnson’s legal costs related to the litigation. Bentley has already indemnified Johnson for these costs, which total approximately $720,000, under the terms of his Director’s Deed and the company’s constitution. However, the precise amount Keybridge is liable to pay remains to be quantified by a Judicial Registrar, adding an element of financial uncertainty for both parties.
Current Status and Settlement Prospects
With the next case management hearing scheduled for 19 November 2025, Bentley and Keybridge have recently entered into discussions aimed at settling the legal cost claims. Such a settlement could potentially avoid further court costs and protracted litigation, but no agreement has yet been announced. Bentley has committed to keeping the market informed of any developments, signaling the importance of this matter to its shareholders and stakeholders.
Broader Context and Market Impact
This legal cost dispute highlights the complexities that can arise when intertwined corporate relationships and director appointments lead to costly litigation. For Bentley, the outcome will affect its financial statements and possibly its reputation, given the public nature of the proceedings. For Keybridge, the ruling and potential settlement represent a significant financial obligation and a reminder of the risks associated with boardroom conflicts and shareholder activism.
Bottom Line?
As Bentley and Keybridge negotiate settlement terms, investors should watch closely for the financial and strategic fallout from this drawn-out legal saga.
Questions in the middle?
- What will be the final quantum of legal costs Keybridge must pay following judicial assessment?
- Could the settlement talks lead to a swift resolution or prolong the dispute further?
- How might this legal dispute influence Bentley’s future director indemnity policies and shareholder relations?