“They were making $60,000 profit when he arrived, and were up to $10m sales per year within a short time,” he told the court.
Zuru filed legal action in 2021 alleging Taylor had breached a restraint provision in his share sale agreement, and passed on confidential information to commercial rivals.
Taylor had denied the claims up until last week, but this morning Walker said of Taylor: “He’s settled and admitted several courses of action”.
Walker said proceedings against Keith Taylor, Grant’s father, had also been “discontinued without any admissions”.
Walker said a fresh affidavit filed by Taylor bolstered his clients’ case: “He’s now sworn an affidavit that puts the defendants in a difficult position as conspirators of sorts”.
The settlement effectively flips Taylor in the litigation and leaves Zuru’s legal action now just targeting tiny rival Treasures, who were bought by the JJK Group in 2020.
They are alleged to have been provided confidential information by Taylor when they purchased the ailing domestic nappy brand.
The court today heard the opening address by Walker, who foreshadowed claims to be made by defendants as to why they deleted some information and sought to conceal their business activities from Zuru.
“They will try to paint a picture of you that it’s all Mr Mowbray’s fault. He was so unreasonable and litigious, and he’d sue if he could,” Walker said.
The JJK Group was originally a trio of business people: Jarrod Armitage, James Collie and former Tall Black Kirk Penney.
Penney has been pursued by Zuru through the courts to the United States where he is helping coach his alma mater’s University of Wisconsin basketball team.
His stake in JJK was acquired last year by interests associated with Nick and Mat Mowbray.
Penney is also providing evidence for the plaintiffs.
Barrister Sam Lowery, acting for JJK, told the court the settlement by Grant Taylor did not undermine their defence.
“JJK does not dispute that Grant Taylor and Jared Armitage are friends.
“Doesn’t dispute that Taylor confided in Armitage about the Mowbray’s pretty brutal corporate play to push his family out of Rascals,” Lowery said.
“If there’s one thing that can be said for Zuru, they are go-getters. They were crushing it. They are known for being aggressive, not only in business, but highly litigious,” he said.
“No wonder Grant Taylor warned JJK directors, warned against dealing with the Mowbrays on any level.”
The court heard Rascals had grown quickly through an exclusive partnership with Foodstuffs, and had sought to acquire another brand to repeat the trick with Progressive Enterprises.
Walker said Rascals’ inability to acquire Treasures meant it took five more years to develop their Millie Moon brand to sell exclusively through Woolworths, and it was seeking damages and compensation to remedy this.
The court heard the JJK Group had acquired the Treasures brand for $300,000 in 2020, with their bid having topped Mowbray’s own offer of $200,000.
Walker made applications to suppress information Zuru and Rascals considered to be confidential.
Justice Dani Gardiner granted an interim order suppressing Rascal’s pricing model, the location and name of its factories used to make nappies in China, the specifics of Rascal’s “targeted digital marketing model” and the technical specifics of their nappies themselves.
The trial continues, with Nick Mowbray expected to give evidence tomorrow.
