ACE Project Group v Ginger Development [2004] NSWSC 174

New South Wales Supreme Court

CITATION : ACE Project Group v Ginger Development [2004] NSWSC 174 HEARING DATE(S) : 15 March 2004 JUDGMENT DATE : 16 March 2004 JURISDICTION: Equity JUDGMENT OF : Austin J DECISION : Application for leave to file cross-claim denied

CATCHWORDS : PRACTICE AND PROCEDURE - application for leave to file cross-claim - plaintiff's case ready for hearing - applicant has defaulted in compliance with previous directions - cross-claim does not substantially overlap with statement of claim - (no issue of general principle) Crown Developments Australia Pty Ltd v Ginger Development Enterprises Pty Ltd [2003] NSWSC 593 CASES CITED : Ginger Development Enterprises Pty Ltd v Crown Developments Australia Pty Ltd [2003] NSWCA 296 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 ACE Project Group Pty Ltd (P/R) PARTIES : Ginger Development Enterprises Pty Ltd (D1/A) Yau Fong Yuen and Yuk Mui Kum (D2/A) FILE NUMBER(S) : SC 5702/02 COUNSEL : Mr AJL Ogborne (P/R) Mr J B Whittle SC with Ms J E Stuckey-Clarke (D/A) SOLICITORS : Raymond Lee & Co (P/R) Dennis Wong & Co (D/A)

IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION

AUSITN J

TUESDAY 16 MARCH 2004

5702/02 ACE PROJECT GROUP PTY LTD V GINGER DEVELOPMENT ENTERPRISES PTY LTD & ANOR JUDGMENT 1 HIS HONOUR: The plaintiff ("ACE") is an architectural company the principal of which is Ms Shan Ruan. The present proceeding was commenced by a summons filed on behalf of ACE on 27 November 2002. In the summons ACE sought interlocutory and final orders with respect to two development properties, one at Arden Street Clovelly and the other at Crown Street Surry Hills, which it claims to be partnership property. ACE sought, inter alia, an interlocutory order to restrain the first defendant ("Ginger") from dealing with any proceeds of the sale of the Crown Street land, under a contract between Ginger as vendor and Crown Developments Australia Pty Ltd ("Crown Developments") as purchaser dated 15 February 2002. On 28 November 2002 Ginger undertook to the Court not to complete that contract of sale, and not to enter into any other contract of the sale of the Crown Street land, without giving 14 days prior written notice to ACE. 2 On 27 March 2003 ACE filed a statement of claim. By that pleading ACE makes the following contentions: In about July 1996 the second defendants (Mr Yuen and Ms Kum), and Ms Shan Ruan and Mr Ming Tao Chen, agreed that they would commence and carry on a property development business in partnership. Ms Ruan and Mr Chen arranged for the incorporation of Ginger, with Mr Yuen and Ms Kum as shareholders, Ms Ruan as director and Mr Chen as secretary. Mr Yuen provided capital of $380,000 to Ginger in July 1996. Ms Ruan and Mr Chen investigated potential development sites and prepared marketing and feasibility studies until September 1996, without remuneration but on the basis that they would obtain a share of the profits of any development.