Garawin Pty Ltd v 1A Eden Pty Ltd [2022] NSWSC 333

Supreme Court New South Wales

Medium Neutral Citation: Garawin Pty Ltd v 1A Eden Pty Ltd [2022] NSWSC 333 Hearing dates: 10, 12 & 13 May and 3 June 2021 Date of orders: 25 March 2022 Decision date: 25 March 2022 Jurisdiction: Equity Before: Slattery J Decision: Order made for caveats to be removed. Injunction issued against all parties dealing with land distributed or partially distributed from the trust. Orders made for trustee to ascertain an appropriate provision for external liabilities. Catchwords: REAL PROPERTY – Torrens title – caveats – application to remove caveats – Real Property Act 1900, s 74MA(2) – real property development joint venture conducted through trustee company as trustee of a unit trust – plaintiff a 50% interest holder in the units in the unit trust – agreement to distribute the profits in specie in the form of lots of the development – distribution commenced but not completed – building under development the subject of defect proceedings – trust faced with unexpected external liabilities – further distribution suspended but plaintiff's permitted to mortgage undistributed lots – freezing orders made by consent against lots to be distributed to second defendant – lots distributed to the third defendant – caveats placed on all lots respect parties – plaintiff seeks removal of caveats to enable distribution – whether caveats bad in form – what if any ancillary relief should be granted if caveats are removed. Legislation Cited: Design and Building Practitioners Act 2020 Home Building Act 1989, s 18B Real Property Act 1900, ss 74MA(2), (3), 74P Trustee Act 1925, s 102 Cases Cited: Barnes v Addy (1874) LR 9 Ch App 244 Burke v LFOT Pty Ltd (2002) 209 CLR 282 Christensen v Christensen [1954] QWN 37 Clark v Dillon SC Napier (1925) 26 GLR 201 Gissing v Gissing [1971] AC 886 Hohler v Aston [1920] 2 Ch 420 In the matter of 1A Eden Pty Limited [2021] NSWSC 82 Jones v Maynard [1951] Ch 572 Labouchere v Tupper (1857) 14 ER 670 Maddison v Alderson (1883) 8 App Cas 467 McBride v Sandland (1918) 25 CLR 69 Ottley v Gilby (1845) 50 ER 237 Re Cowin (1886) 33 Ch. D 179 Re Craig (1952) 52 SR (NSW) 265 Re Johnson (1880) 15 Ch. D 548 Re Oxley [1914] 1 Ch 604 Re Unit 2 Windows Ltd [1985] 1 WLR 1383 Spingett v Dashwood (1860) 66 ER 218 Stack v Dowden [2007] 2 AC 432 Steel v Dixon (1881) 17 Ch. D 825 Tanti v Carlson [1948] VLR 401 Thwaites v Ryan [1984] VR 65 Vacuum Oil Co. Ltd v Wiltshire (1945) 72 CLR 319 Walton's Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 White v Lady Lincoln (1803) 8 Ves 363 Texts Cited: HAJ Ford and WA Lee, Principles of the Law of Trusts, (1990, 2nd edition, Law Book Co) PJ Butt, Land Law (7th ed 2017, Thomson Reuters) PW Young, C Croft, ML Smith, On Equity (2009, Thomson Reuters) RP Meagher, "Insolvency of Trustees" (1979) 53 ALJ 648 Category: Principal judgment Parties: Plaintiff: Garawin Pty Limited ACN 074380715 First Defendant: 1A Eden Pty Ltd ACN 162152794 Second Defendant: Zaarour Investments Pty Ltd Third Defendant: Joesandra Pty Limited atf The Sleiman Family Trust ACN 130 126 206 Fourth Defendant: Christopher Robert Zaarour Representation: Counsel: Plaintiff: D. Weinberger Second, Third and Fourth Defendants: A. Davis