BCEG International (Australia) Pty Ltd v Xiao (No 3) [2023] NSWSC 554

Supreme Court New South Wales

Medium Neutral Citation: BCEG International (Australia) Pty Ltd v Xiao (No 3) [2023] NSWSC 554 Hearing dates: 15 and 19 May 2023 Date of orders: 25 May 2023 Decision date: 25 May 2023 Jurisdiction: Equity Before: Darke J Decision: Penalties imposed in respect of various contempts of Court, as set out at [72]. Catchwords: CONTEMPT — civil contempt — penalties – sentencing – fines – sequestration – where the first, second, fourth and fifth defendants were found guilty of various contempts of court – where contempts involving breaches of asset preservation orders and breaches of undertakings to the Court have remained unpurged for an extended period – consideration of the appropriate penalties for the contempts –whether an order for indemnity costs ought to be made against the first, second, fourth and fifth defendants – held that the nature and seriousness of the contempts warrants the imposition of a penalty of imprisonment and fine upon the first defendant and the imposition of a fine upon the second defendant – held that the commencement of the term of imprisonment of the first defendant should be suspended for a period to give a further opportunity for the outstanding contempts to be purged – held that an order for sequestration should be made against the fifth defendant – held that the order for sequestration should be suspended for a period to give a further opportunity for the outstanding contempt to be purged – held that an order for indemnity costs should be made against each of the defendants Legislation Cited: Civil Procedure Act 2005 (NSW), s 98 Supreme Court Rules 1970 (NSW), Pt 55, rr 13, 14 Cases Cited: Australasian Meat Industry Employees' Union v Mudginberri Station Pty Ltd (1986) 161 CLR 98 BCEG International (Australia) Pty Ltd v Xiao [2023] NSWSC 57 Construction, Forestry, Mining and Energy Union v Grocon Constructors (Victoria) Pty Ltd (2014) 47 VR 527; [2014] VSCA 261 Dowling v Prothonotary of the Supreme Court of New South Wales (2018) 99 NSWLR 229; [2018] NSWCA 340 He v Sun (2021) 104 NSWLR 518; [2021] NSWCA 95 Matthews v Australian Securities and Investments Commission [2009] NSWCA 155 NHB Enterprises Pty Ltd v Corry (No 8) [2022] NSWSC 97 Vaysman v Deckers Outdoor Corporation Inc (2011) 276 ALR 596; [2011] FCAFC 17 Xiao v BCEG International (Australia) Pty Ltd [2023] NSWCA 48 Category: Sentence Parties: BCEG International (Australia) Pty Ltd (Plaintiff) Yu Xiao (First Defendant) Yanying Chen (Second Defendant) Interlink Laboratory Pty Ltd (Third Defendant) Interlink Wagga Central Pty Ltd (Fourth Defendant) West Wyalong Marketplace Pty Ltd (Fifth Defendant) Representation: Counsel: Mr D L Williams SC with Mr N D Riordan (Plaintiff) Mr J C Giles SC with Mr B Le Plastrier (First, Fourth and Fifth Defendants) Mr D B Studdy SC (Second Defendant)