Why jewellery boss James Kennedy is in legal spat with bestie Ben Scott

James Kennedy has just wrapped up another Supreme Court case – against some family members – and next the jewellery baron will go head to head with his former childhood friend.

He’s the high-profile luxury jewellery retailer who is no stranger to civil litigation.

James Kennedy, whose boutiques were last month targeted by thieves for the second time in six months, has just wrapped up yet another Supreme Court case, this time against members of his family.

And next month, the jewellery baron will go head to head with his former childhood friend in what’s tipped to be a bitter legal spat.

Mr Kennedy, chief executive of Kennedy Jewellery, has previously had legal stoushes with a number of businesses, including Bang & Olufsen, a Kennedy Jewellery customer, builder Schiavello, and global event and hospitality company The Big Group.

His most recent court battle against his family comes following a fallout over the namesake business he took over from his mother.

Kennedy started as a small watch and jewellery shop, LK Jewellery, in Sydney’s Double Bay that was started by James’s parents.

Mr Kennedy inherited the shop and has built it into a fast-growing luxury goods group selling prestigious brands including Rolex watches, Patek Philippe, Omega, Cartier and Longines.

But, according to documents lodged with the Supreme Court last week, Mr Kennedy has been engaged in a family dispute relating to the ownership of the business, with James making a proposal to alter the shareholding agreements. According to court documents, Mr Kennedy claimed the heads of agreement meant he was legally entitled to buy the shares of the first to fifth defendants “subject to the prescribed valuation process and payment of the price calculated accordingly”.

Ben Scott and James Kennedy when they were friends in 2018.

The judge’s decision was that the heads of agreement do not confer on Mr Kennedy an option to buy.

In coming weeks, Mr Kennedy will be in the Supreme Court yet again, defending a claim brought by Ben Scott, a former childhood friend and the co-creator of Aussie reality TV show Luxe Listings Sydney. The pair have had a big falling-out, with Scott suing Kennedy in the NSW Supreme Court over allegations of misappropriated money and lost revenue.

The preliminary hearing is the first of many that will build up to a trial next year that will allege secret dealings by Mr Kennedy for product placement of Rolex and Patek Philippe watches in Luxe Listings Sydney, which recently became an international format for Amazon with the release of Luxe Listings Toronto.

Mr Scott is the only individual credited as an EP in perpetuity by Amazon for Luxe Listings Sydney for creating the format.

Mr Scott, who once worked with radio personality Kyle Sandilands on 2017 reality TV series Meet the Hockers, has launched legal action against Mr Kennedy.

He is suing him for multiple allegations, including breach of fiduciary duty as a co-director, misallocation of company funds, diversion of assets and withdrawing company funding without reasonable notice. 

A statement of claim filed by Mr Scott in the Supreme Court reveals Channel 10 almost picked up Luxe Listings Sydney before it was sold to Amazon, which acquired all ownership and rights to the production for a lump-sum payment of $US30,000 ($45,000), plus $US15,000 ($22,500) an episode paid to Kentel Australasia, the production company then jointly run by Mr Scott and Mr Kennedy.

Mr Scott apparently did not agree with the show’s final placement and claims that Ten’s reason for exiting the agreement at the last minute was never disclosed to him, and that Mr Kennedy negotiated the Amazon deal behind his back.

According to the statement of claim, Mr Scott also claims Mr Kennedy tried to divert business opportunities for the development of new TV shows away from Kentel from early 2022 by setting up new production companies, listing himself as the sole director.

Mr Scott further claims Mr Kennedy also misallocated or misappropriated money from Kentel Australasia while acting as its director.

Mr Kennedy has filed a defence denying all the claims and asserting that he and his previous employee, Jacqui Feeney, the now chief executive of Screen Queensland, were legally entitled to the TV shows and IP that Mr Scott alleges were diverted.

He also claims any company funds that Mr Scott alleges were misappropriated were simple repayment of a “Kennedy loan” provided by Mr Kennedy to their production company Kentel.

With the next hearing scheduled for July 15, Sunday Confidential is hearing whispers it is set to be “sensational”, with a number of high-profile witnesses, including Mr Scott’s long time friend Fadi Ibrahim, talent manager James Erskine, and TV producer and Order of Australia recipient Harry Michaels, being brought in by Mr Scott.

Mr Scott isn’t the only friend Mr Kennedy has had a falling-out with.

He is also said to no longer speak to his former best friends, the Rivkin twins, Dion and Shannon, restaurateur Adam Abrams, and The Island owner Julian Tobias.

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