Statement From Karting NSW

Karting NSW has today issued a media release regarding the findings of the NSW Supreme Court.


MEDIA RELEASE – 27 AUGUST 2021

KNSW ACKNOWLEDGES SUPREME COURT JUDGEMENT

Karting (New South Wales) Inc (KNSW) acknowledges the findings of Justice Adamson in the Supreme Court decision handed down on 25 August 2021.

Australian Karting Association Limited (Karting Australia) commenced proceedings against KNSW for monies said to be outstanding in relation to three (3) loan agreements. The loan agreements were for track development works conducted at Tamworth Kart Club, Coffs Harbour Kart Club and Combined Districts Kart Club. As at the date of the hearing, the loans had been repaid in full by Tamworth Kart Club and Coffs Harbour Kart Club. Combined Districts Kart Club has made every monthly payment under the loan agreement and continues to do so.

KNSW defended the claim on the basis that it was not in default of the loan agreements, as Karting Australia had not validly expelled it as an Ordinary Member and that the terms for accelerated payment and interest in the loan agreements amounted to a penalty and were unenforceable at law.



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In response and by cross-claim, KNSW sought the return of driver levies in the Track Development Fund, which amounted to unpaid distributions under a Trust created in 2005.

Karting Australia was unsuccessful in it’s claim and KNSW was successful in its cross-claim. Full details of the judgment is located: https://www.caselaw.nsw.gov.au/…/17b7c1dde54cea47ee867be0

Ilona Meyer, Chair of KNSW said “Although KNSW are obviously delighted with the Supreme Court’s findings, we are disappointed that the dispute between two not-for-profit sporting associations had got to this point”.

“As a lawyer myself, I can say litigation like this is a complete distraction, waste of precious time, resources and funding – particularly at a time when sport as a whole is being challenged by the current pandemic.”

That being said, KNSW wishes to thank all KNSW Clubs, Members and it’s legal advisors that have supported KNSW throughout this process.

The KNSW Board now looks forward to fully focusing its efforts on rebuilding our great sport and its return from lockdown, when permitted.



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