Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd (in liq) (No 3) [2022] NSWSC 1702

Supreme Court New South Wales

Medium Neutral Citation: Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd (in liq) (No 3) [2022] NSWSC 1702 Hearing dates: 30 November 2022 Date of orders: 14 December 2022 Decision date: 14 December 2022 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Stay granted on payment of judgment sum into Court. Catchwords: JUDGMENT AND ORDERS – stay pending appeal – judgment debt of $9 million – defendants mortgage property to secure $99 million loan in breach of freezing order – defendant disclaims knowledge of mortgage – defendant disclaims signature where witnessed by solicitor – defendants' net assets of $16 million – highly leveraged – offer of unregistered third mortgage likely a default under first mortgages – not satisfied that defendants cannot provide cash or security in support of a stay – evidence as to financial position selective – stay granted on payment of judgment sum into Court in two instalments. Legislation Cited: Conveyancing Act 1919 (NSW), s 37A Corporations Act 2001 (Cth), ss 254T, 588FDA Uniform Civil Procedure Rules 2005 (NSW), r 51.44 Cases Cited: Alexander v Cambridge Credit Corporation (1985) 2 NSWLR 685 Atlas Construction Group Pty Ltd v Fitz Jersey Pty Ltd [2017] NSWSC 72 Attorney-General of the Commonwealth v Davids Holdings Pty Ltd (1993) ATPR 41-247 Deputy Commissioner of Taxation v Cutili Invest 88 Pty Ltd [2020] FCA 47 Fatimi Pty Ltd v Bryant & Ors [2002] NSWSC 750 Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd (in liq) [2021] NSWSC 1692 Fitz Jersey Pty Ltd v Atlas Construction Group Pty Ltd (in liq) [2022] NSWSC 394 Gunasegaram v Blue Visions Management Pty Ltd [2017] NSWCA 187 Jeans v Cleary [2006] NSWSC 647 Kalafair Pty Ltd v Digitec (Australia) Pty Ltd [2002] NSWCA 383; (2002) 55 NSWLR 737 Kensela v Russell Kinsela Pty Ltd (in liq) (1986) 4 NSWLR 722 Klewer v Official Trustee in Bankruptcy (No 2) [2010] NSWCA 258 Lazarus v Director of Public Prosecutions (NSW) [2015] NSWSC 426 Maharajas Palace Pty Ltd v Raj & Jai Construction Pty Ltd [2018] NSWCA 191 Mao v AMP Superannuation Limited [2017] NSWCA 296 Penson v Titan (No 2) National Pty Ltd [2015] NSWCA 120 Port Macquarie Hastings Council v Diveva Pty Ltd [2017] NSWCA 4 R v Doney [2001] NSWCCA 463; (2001) 126 A Crim R 271 Re Application of Sutherland and Arnautovic [2014] NSWSC 821 Tasoulas v Tasoulas [2018] NSWSC 861 UGL Rail Pty Ltd v Wilkinson Murray Pty Ltd (No 2) [2015] NSWSC 23 Yolarno Pty Ltd v Shandong Delisi Food Co Ltd [2022] NSWCA 30 Texts Cited: Judge P Biscoe, Freezing & Search Orders: Mareva & Anton Piller Orders (2nd ed, 2008, LexisNexis) Category: Consequential orders Parties: Robert Lewis Yazbek (First Applicant/Second Defendant) Kebzay Pty Ltd (Second Applicant/Third Defendant) Botany Road Project Pty Ltd (Third Applicant/Fourth Defendant) Scott Sweeney (Fourth Applicant/Fifth Defendant) Annette Yazbek (Fifth Applicant/Seventh Defendant) Kebzay Custodian No.2 Pty Ltd (Sixth Applicant/Eighth Defendant) 620 Botany Road Pty Ltd (Seventh Applicant/Tenth Defendant) Fitz Jersey Pty Ltd (Respondent/Plaintiff) Representation: Counsel: Mr GA Sirtes SC / Mr J Adamopoulos (Applicants/Defendants) Mr M Christie SC / Mr B Mostafa / Mr M Sherman (Respondent/Plaintiff)