Madsen v Darmali [2024] NSWSC 76

Supreme Court New South Wales

Medium Neutral Citation: Madsen v Darmali [2024] NSWSC 76 Hearing dates: 2 February 2024, last submissions received 5 February 2024 Date of orders: 8 and 9 February 2024 Decision date: 13 February 2024 Jurisdiction: Equity - Expedition List Before: Rees J Decision: Discharge ex parte passport, freezing and disclosure orders, with costs. Catchwords: INTERLOCUTORY INJUNCTIONS – ex parte application made to vacation Duty Judge for passport orders and third-party freezing orders – plaintiff transferred $14M to Singapore in 2021 to defendants' bank account – Court told there was "big black hole" as to what has happened to the money – Court informed it was "a very sophisticated equitable fraud" – Court not taken to the exhibits which documented what had happened to the money – Court not taken to material indicating that defendants posed no flight risk, including a report from a private investigator. FREEZING AND PASSPORT ORDERS – principles at [6]-[11] – duty of candour on ex parte applications – principles at [12]-[15] – material non-disclosure – orders discharged. Cases Cited: Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc (1981) 148 CLR 170 Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57 Bayer AG v Winter [1986] 1 All ER 733 at 738 Beecham Group Ltd v Bristol Laboratories Pty Ltd (1968) 118 CLR 618 Brags Electrics Ltd v Gregory [2010] NSWSC 1205 Brink's Mat Ltd v Elcombe [1988] 3 All ER 188 Cardile v LED Builders Pty Ltd (1999) 198 CLR 380 Danieletto v Khera (Supreme Court (NSW), Bryson J, 17 February 1995, unrep) Hislop v Paltar Petroleum Ltd (No 2) (2017) 122 ACSR 358 Hutchinson v Nominal Defendant [1972] 1 NSWLR 443 Huynh v Attorney General (NSW) (2021) 107 NSWLR 75 JSC Mezhdunarodny Promyshlenniy Bank v Sergi Viktorovich Pugachev [2015] EWCA Civ 1108 Kodak (Australasia) Pty Ltd v Cochran (Supreme Court (NSW), Brownie J, 4 April 1996, unrep) Lakatamia Shipping Company Ltd v Su [2021] EWCA Civ 1187 Mineralogy Pty Ltd v Sino Iron Pty Ltd [2016] WASCA 105 NT Power Generation Pty Ltd v Power and Water Authority (2004) 219 CLR 90 Principal Financial Group Pty Ltd v Vella [2011] NSWSC 327 RD Werner & Co Inc v Bailey Aluminium Products Pty Ltd (1988) 18 FCR 389 Self Care Corporation Pty Ltd v Green Forest International [2021] FCCA 129 Short v Crawley (No 42) [2009] NSWSC 1110 Singtel Optus Pty Ltd v Almad Pty Ltd [2011] NSWSC 492 Walter Rau Neusser Oel und Fett AG v Cross Pacific Trading Ltd [2005] FCA 955 Texts Cited: Peter Biscoe, Freezing and Search Orders (3rd ed, 2023, LexisNexis) Category: Procedural rulings Parties: Benny Madsen (Plaintiff) David Darmali (First Defendant) Chu Li (Second Defendant) Representation: Counsel: Mr P Doyle-Gray / Mr JD Cook (Plaintiff) Mr MA Friedgut (First and Second Defendants)