A company has been ordered to pay more than $1.1 million after a court upheld an oral agreement made during a "boozy lunch".
White Pointer Investments, directed by Hilton Hedley, sued Creative Academy Group and its director, Simon Larcombe, in the NSW Supreme Court.
Justice Kelly Rees found Mr Hedley "sourced" eight childcare centre sites for Mr Larcombe.
Seven of them were in the ACT suburbs of Conder, Dickson, Macgregor, Red Hill, Taylor, Throsby and Woden.
"Mr Hedley was clearly annoyed about the events which had unfolded," a judgement published last month reads.
"Mr Hedley was entitled to feel badly treated by his 'mate', who later boasted that he had 'smashed' Mr Hedley on fees.
"Mr Hedley was reluctant to accept that he had provided the defendants with advice in respect of whether a particular site was suitable, agreeing that he provided 'vague advice on whether the opportunity was a good or a bad one'.
"Likewise, to the extent that it was a 'cracker' or a 'f'ing cracker' ... it'd be limited to that."
Justice Rees found Mr Hedley did provide advice "in loose colloquial terms".
The defendants had argued that Mr Larcombe "could not offer any cogent evidence" about what was said during a "boozy lunch" six years ago.
During this lunch, it was said to have been agreed that Mr Hedley would source sites for childcare centres and the defendants would pay him $2000, plus tax, per placement.
Mr Larcombe said: "If you source childcare centres for us, we will pay you those fees."
Justice Rees found Creative Academy Group was unknown in the Canberra childcare sector at the time.
"Given his experience, Mr Hedley understood that the defendants were going to have difficulties securing sites to operate childcare centres," the judge stated.
"Such sites are usually taken up by established operators with a proven track record.
"If Mr Larcombe had not agreed to pay the fee, Mr Hedley would have continued to put other clients forward for childcare sites rather than the defendants."
Justice Rees ultimately found Mr Hedley was entitled to the money, upheld the contract and ordered that he be paid $747,650.
She said he would be entitled to a further $418,000 once three of the childcare centres opened.
