The applicant appealed a Proposal Trustee's disallowance of its proof of claim against the respondent's estate.
The claim arose from the respondent's alleged breach of a settlement agreement prohibiting the diversion of salon-only products to unauthorized retailers.
The court drew inferences from circumstantial evidence that the respondent had diverted products to a grey market store in Macau, constituting a material breach of the agreement.
The court upheld the liquidated damages clause as a genuine pre-estimate of damages and enforced the applicant's contractual right to reasonable attorneys' fees, allowing the proof of claim in full.
