The company tasked with helping grow NIB's hugely successful Whitecoat platform has been ordered to repay $1.6 million in debts to the health insurer.
Whitecoat was jointly developed by NIB and mobile phone app developer TouchToBuy, a firm owned by Matthew Donnellan.
The platform is an online directory where users can search and book appointments with healthcare providers across Australia.
After Mr Donnellan met with his then friend and NIB CEO Mark Fitzgibbon in 2014, the pair decided to work together on Whitecoat.
The joint venture Digital Health Ventures was established in August 2014 with NIB and TTB each holding 50 per cent of its shares.
Development of the platform went well with Bupa and HCF opting to invest a total of $4.5 million into it. A further $1.5 million loaned to Mr Donnellan by NIB was also invested.
In February 2017, the platform was transferred to Whitecoat HoldCo, which was owned by shareholders NIB, Bupa, HBF and Mr Donnellan's family trust Raffy Nominees.
These shareholders then sold the business to the Commonwealth Bank of Australia for $42.5 million in May 2021.
While Raffy repaid $500,000 it agreed was owed, NIB demanded a further amount of around $1.45 million and filed its NSW Supreme Court lawsuit.
On Wednesday, Justice Michael Ball upheld NIB's claim, ordering Raffy to repay the $1.45 million plus a further $150,000 in interest.
The judge also threw out a cross-claim by Raffy seeking to recoup the $500,000 it had paid and rescind the original loan agreement.
The trust was also ordered to pay NIB's legal costs of a second lawsuit, now discontinued, in which it sought further damages and compensation.
