Seven hundred pallets of Playbook Energy Drinks were reportedly wasted and two people are no longer friends after they fought about money related to trying to distribute the product in Australia.
An ACT Civil and Administrative Tribunal judgment this week states that Julie Okely in June 2017 gave $60,000 to Matthew Sydney Smith, her friend at the time, for what became a failed business venture involving the distribution of the energy drinks in Australia.
Ms Okely claimed the amount was split via two $30,000 loan agreements within a two-week period.
She said her money was to help him transfer a distribution licence for the energy drinks from US-based company CirTran Beverage Corp to PlayBev Pacific Pty Ltd.
At the time, Mr Smith was the sole director and shareholder of the latter company and claimed there was only one loan agreement between him and Ms Okely.
He claimed the other $30,000 was paid directly into the bank account of the US-based company and constituted a capital investment instead as Ms Okely was working with him to get the energy drink business off the ground in Australia.
The pair's dispute related to one of the agreements was settled after the tribunal in September 2020 ruled in favour of Ms Okely and made orders for $25,000, being the jurisdictional limit, plus interests of $3134 and a tribunal filing fee of $572.
Ms Okely enforced those orders through the ACT Magistrates Court and the amount has been paid.
In the latest dispute about whether Mr Smith owes his former friend more money, to which he denied, Ms Okely sought similar orders, being the maximum payment of $25,000 plus interest and a filing fee.
During a hearing earlier this year, the tribunal was told about the existence of 700 pallets of the energy drinks sitting in a warehouse awaiting the transfer of a distribution licence to PlayBev Pacific, which apparently had control of the pallets.
PlayBev Pacific was apparently dispossessed of those pallets via some allegedly fraudulent means and inevitably the stock went past its expiry date without distribution.
At some point, Ms Okely established a business called Vodka Secrets in an effort to team up the energy drink brand with a vodka distillery; however, this did not eventuate.
In the judgment this week, Kristy Katavic, a senior tribunal member, ordered Mr Smith to pay Ms Okely the jurisdictional limit plus $593 in filing fee.
"The parties in this matter used to be friends. Their friendship ended over a money dispute related to what might have been, but ultimately wasn't, a life-changing business deal," Ms Katavic said.
"It turned out to be life-changing, but not due to a financial windfall as they had expected.
"At the end of the day, both parties appear to have suffered as a consequence of the failed Playboy Energy Drink venture."
Ms Katavic said she was satisfied the evidence showed Mr Smith being the beneficiary of $60,000 from Ms Okely and that the amount comprised two separate loans.
She said she was also satisfied Ms Okely had proven her case on the balance of probabilities.
The senior member said she could not accept Mr Smith's argument about the transaction being a capital investment and that his evidence about what happened "was not clear and at times inconsistent".
Ms Okely told The Canberra Times she was satisfied with professionalism of the tribunal and the expertise of Ms Katavic "to review the case in a timely manner".
"I felt I was heard. It was really important that my voice was heard," Ms Okely said.
"I'm glad to see that this will be end of the process."
Mr Smith has been contacted for comment.
