DC Rd DC Pty Ltd v Zhang (No 3) [2024] FCA 221

Federal Court of Australia

DC Rd DC Pty Ltd v Zhang (No 3) [2024] FCA 221 File number: NSD 247 of 2023

Judgment of: JACKMAN J

Date of judgment: 12 March 2024

Catchwords: CONTEMPT OF COURT – whether company breached court order – whether transaction was in ordinary and proper course of business – where mortgage covered debts of second company with common director – charge dismissed CONTEMPT OF COURT – where alleged contemnor not bound by court order – where alleged contemnor director of contemnor – whether liable only if director had actual knowledge that conduct would breach court order – conflict between seriously considered High Court obiter dicta and Full Court ratio decidendi – High Court dicta followed and charge dismissed

Legislation: Corporations Act 2001 (Cth) ss 50, 259A Federal Court Rules 2011 (Cth) rr 7.32, 7.33, 7.35

Cases cited: ADM International SARL v Grain House International SA [2024] EWCA Civ 33 Attorney-General v Newspaper Publishing Plc [1988] Ch 333 Australian Competition and Consumer Commission v Goldstar Corporation Pty Ltd [1999] FCA 585 Australian Securities and Investments Commission v One Tech Media Limited (No 3) [2018] FCA 1071 Australian Securities and Investments Commission v Sigalla (No 3) [2010] NSWSC 1076 BB Retail Capital Pty Ltd v Alexandria Landfill Pty Ltd [2015] NSWCA 319 BCEG International (Australia) Pty Ltd v Xiao [2023] NSWSC 57 Cardile v LED Builders Pty Ltd [1999] HCA 18; (1999) 198 CLR 380 Farah Constructions Pty Limited v Say-Dee Pty Limited [2007] HCA 22; (2007) 230 CLR 89 Fire Nymph Products Ltd v The Heating Centre Pty Ltd (in liq) (1992) 7 ACSR 365 Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd (in liq) (No 3) [2022] NSWSC 1702 Fortune Holding Group Pty Ltd v Zhang (No 2) [2017] VSC 738 Harvard Nominees Pty Ltd v Tiller [2020] FCAFC 229; (2020) 282 FCR 530 Humane Society International Inc v Kyodo Senpaku Kaisha Limited [2015] FCA 1275; (2015) 238 FCR 209 Hurd v Zomojo Pty Ltd [2015] FCAFC 148 ICI Australia Operations Pty Ltd v Trade Practices Commission (1992) 38 FCR 248 Jorgensen v Fair Work Ombudsman [2019] FCAFC 113; (2019) 271 FCR 461 Kazal v Thunder Studios Inc (California) [2017] FCAFC 111; (2017) 256 FCR 90 Mahaffy v Mahaffy [2018] NSWCA 42; (2018) 97 NSWLR 119 Mead v Mead [2007] HCA 25; (2007) 235 ALR 197 Metcash Trading Ltd v Bunn (No 5) [2009] FCA 16 Michael Wilson and Partners Ltd v Emmott [2015] EWCA Civ 1028 Pape v Commissioner of Taxation [2009] HCA 23; (2009) 238 CLR 1 Reynolds Bros (Motors) Pty Ltd v Esanda Limited (1983) 8 ACLR 422 Seaward v Paterson [1897] 1 Ch 545 Sigalla v TZ Limited [2011] NSWCA 334 The Queen v Khazaal [2012] HCA 26; (2012) 246 CLR 601 Witham v Holloway (1995) 183 CLR 525 Z Limited v A-Z and AA-LL [1982] QB 558 Zhang v Shi (No 5) [2021] VSC 695 Zhu v Treasurer of the State of New South Wales [2004] HCA 56; (2004) 218 CLR 530 Herzfeld, Perry and Thomas Prince, Interpretation (Lawbook Co, 2nd ed, 2020) Palmer, Francis and Alfred Topham, Palmer's Company Precedents (Stevens, 16th ed, 1951)