Morkaya v Parkinson; Parkinson v Morkaya [2008] NSWSC 1050

New South Wales Supreme Court

CITATION : Morkaya v Parkinson; Parkinson v Morkaya [2008] NSWSC 1050

HEARING DATE(S) : 29 August, 4 September & 2 October 2008

JUDGMENT DATE : 10 October 2008

JURISDICTION : Equity Division Duty List

JUDGMENT OF : Brereton J

DECISION : Provisional liquidator appointed to Ativa; more extensive reporting regime instituted in respect of DCA.

CATCHWORDS : INTERLOCUTORY APPLICATION – interim management of two businesses owned by former couple – where de facto relationship disputed – where one business (OSP) run by corporation (Ativa) in which couple were shareholders and directors and other (DCA) arguably a partnership – where personal relationship has irretrievably broken down – where interlocutory regime already in place for interim management of businesses with female partner having control of OSP and male of DCA – where male partner applies for interim control of OSP – principles applicable on dissolution of partnership – whether female partner had mismanaged OSP and/or failed to conduct it openly and impartially – whether male partner should be given control of OSP – where corporation was insolvent or approaching insolvency – where there was reason to doubt the ability of either partner to manage the business impartially and transparently – where both partners had prima facie preferred his or her own interests to those of corporation and creditors – whether provisional liquidator should be appointed – whether male partner should be required to seek leave before filing further notices of motion – whether sufficient reason to alter current regime for interlocutory management – whether female partner should have greater visibility of DCA business – whether parties should be ordered to release rental bond of premises leased by both businesses to lessor.