Georgopoulos v Sclavos [2010] NSWSC 1341

New South Wales Supreme Court

CITATION : Georgopoulos v Sclavos [2010] NSWSC 1341

HEARING DATE(S) : 12 November 2010

JUDGMENT DATE : 15 November 2010

JURISDICTION : Equity

JUDGMENT OF : White J

EX TEMPORE JUDGMENT DATE : 15 November 2010

DECISION : Refer to paras 81 and 82 of judgment.

CATCHWORDS : PROCEDURE – application under Uniform Civil Procedure Rules, r 36.16(2)(b) to set aside orders made in defendant's absence – where partnership dissolved and receiver and manager appointed to realise assets and pay proceeds into court pending finalisation of proceedings – where unjust for orders challenged to stand –further steps for progressing the taking of the partnership accounts and passing of receiver's accounts

LEGISLATION CITED : Corporations Act 2001 (Cth)

CATEGORY : Procedural and other rulings

Plaintiff: Victoria Georgopoulos PARTIES : 1st Defendant: Phillip Sclavos 2nd Defendant: Lauriston & Marsden Pty Ltd 3rd Defendant: Arristo Pty Ltd

FILE NUMBER(S) : SC 2007/258413

COUNSEL : Plaintiff: C Evatt with M K Rollinson 1st Defendant: M Condon

SOLICITORS : Plaintiff: David White & Associates 1st Defendant: Bateman Battersby

IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION DUTY JUDGE'S LIST

WHITE J

Monday, 15 November 2010

2007/258413 Victoria Georgopoulos v Phillip Sclavos & Ors JUDGMENT 1 HIS HONOUR: This is an application under r 36.16(2)(b) of the Uniform Civil Procedure Rules 2005 to set aside orders 2 and 4 made by Tamberlin AJ on 1 November 2010. 2 The proceedings concern a partnership conducted by the plaintiff and the first defendant and the affairs of companies, namely, the second and third defendants of which they are equal shareholders. They are the directors of the corporate defendants. 3 The plaintiff and the first defendant were the owners of land at 146 Marsden Road, Dundas on which was located a function centre known as Lauriston House. The business of the function centre was carried on by the third defendant, Arristo Pty Ltd. 4 Other land adjacent to 146 Marsden Road was owned by the second defendant, Lauriston & Marsden Pty Ltd. 5 The plaintiff and the first defendant also owned land at Bellevue Street, Blacktown. 6 On 24 December 2007 the plaintiff commenced proceedings against the first defendant and against Lauriston & Marsden Pty Ltd as second defendant and Arristo Pty Ltd as third defendant. 7 The orders sought included an enquiry as to damages allegedly sustained by the plaintiff by reason of the conduct of the first defendant, including for that purpose the taking of accounts. 8 On 23 September 2008 Macready AsJ made orders for the dissolution of the partnership conducted by the plaintiff, the first defendant, the second defendant and the third defendant, comprising the acquisition and the conduct of the business known as Lauriston House. 9 Mr David Hurst of Armstrong Wily was appointed receiver and manager of the partnership and authorised to sell the partnership business and assets. 10 Order 7 made on 23 September 2008 provided that the receiver and manager should pay the net proceeds of sale of the partnership property into Court to be invested pending determination of the balance of the proceedings. Macready AsJ declared that the receiver and manager was entitled to take possession of the property of the second and third defendants and sell such property. 11 Order 13 required the receiver and manager to pay the net proceeds of sale of the assets of the second and third defendants into Court pending determination of the balance of the proceedings. 12 In his reasons of 23 September 2008 His Honour stated that: " Once assets are realised and the balance paid into Court to be invested there will be a need for an accounting between the parties.