Defining defence mandates - lessons from the Consolidated Minerals case

Key Points:

The decision of the NSW Court of Appeal on Tuesday to reject the appeal from the investment bank seeking an additional $30 million in advisory fees in respect of its defence work for Consolidated Minerals is a timely reminder of the importance of having clearly drafted mandate letters. Investment banks, their clients and their respective lawyers should carefully review the terms of mandate letters –particularly the fees clauses

Discussions around the fees payable under mandate letters are not uncommon. However, unlike most disputes, this dispute was not resolved behind closed doors, giving the Court the opportunity to review terms commonly used in these mandate letters.