Zhong v Shield Resources Pty Ltd [2022] NSWSC 391

Supreme Court New South Wales

Medium Neutral Citation: Zhong v Shield Resources Pty Ltd [2022] NSWSC 391 Hearing dates: 14 March 2022 Date of orders: 5 April 2022 Decision date: 05 April 2022 Jurisdiction: Common Law Before: Harrison AsJ Decision: See draft orders at [104] of Judgment. Catchwords: CIVIL PROCEDURE — Interim preservation — Freezing orders – release of funds paid into court – whether necessary for second defendant's living expenses and legal representation at trial – where second defendant restrained from selling property – limited release of funds ordered Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW) 55.11 Cases Cited: Adam P Brown Male Fashions P/L v Philip Morris Inc (1981) 148CLR170; HCA 39 National Australia Bank Limited v Human Group Pty Ltd (No 2) [2020] NSWSC 1900 P/L Birketu v Westpac Banking Corporation (No 2) [2018] NSWSC 494 Zhong v Shield Resources Pty Ltd [2021] NSWSC 617 Category: Procedural rulings Parties: Yuping Zhong (Plaintiff) Shield Resources Pty Ltd (First Defendant) Ying Guan (Second Defendant) Feng Ye (Third Defendant) Representation: Counsel: S. Burchett (Plaintiff) A. Kaufmann (Second Defendant)

Solicitors: Juris Cor legal (Plaintiff) Rostron Carlyle Lawyers (Second Defendant) File Number(s): 2020/95833 Publication restriction: Nil

Judgment 1. HER HONOUR: This matter involves a notice of motion seeking a further payment of funds out of Court to the second defendant. 2. The plaintiff, Mr Zhong, is a businessman who resides in the People's Republic of China. The first defendant is Shield Resources Pty Ltd, a company dealing in the sale of timber. Feng Ye is a director of that company. The second defendant is Ms Ying (Emma) Guan, who on the plaintiff's case guaranteed the loan. The third defendant, Mr Ye is the second defendant's husband. Whether Ms Ying is a guarantor is in dispute as is nearly every fact relevant to the finalisation of these proceedings. 3. The parties could not agree on the contents of a joint court book. The plaintiff relied on 2 volumes of his court book ("Ex A(1)-(2)"). The second defendant relied on her Court Book ("Ex 1") and documents tendered in response to a notice to produce issued by the plaintiff and third defendants ("Ex 2"). 4. By notice of motion filed 15 December 2021, the second defendant seeks the following order: 1. An order that the monies paid into Court by the Second Defendant on about 6 January 2021, less those released on 31 May 2021 in these proceedings, the amount of $350,000 or an amount that the Court thinks fit, be released to the Second Defendant pursuant to rule 55.11(1) of the Uniform Civil Procedure Rules 2005 (NSW). 1. Uniform Civil Procedure Rules 2005 (NSW) ("UCPR") 55.11 reads: 55.11 Proceedings for directions as to payment out of court (1) Funds that have been paid into court may only be paid out of court pursuant to the directions of the Supreme Court. 1. There is some urgency with delivering this judgment as these proceedings have been listed for hearing on 3 May 2022 for 3 days.