In the matter of Gondon Five Pty Ltd [2016] NSWSC 1401

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Gondon Five Pty Ltd [2016] NSWSC 1401 Hearing dates: 8 and 9 September 2016 Date of orders: 13 September 2016 Decision date: 13 September 2016 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Refer para [53] Catchwords: EQUITY – equitable remedies – injunctions – whether freezing order should continue until hearing or further order – whether there is a good arguable case – personal claim to recover moneys advanced by way of loan – execution of agreement relating to that loan – agreement deliberately altered by plaintiff – prima facie, debt still due – removal and replacement of trustee – mere disagreements insufficient to justify removal – reasonable inference that those controlling trustee may not be able or willing to discharge duties with impartiality – trustee of company may not enforce its rights to recover loan – held, there is a good arguable case – whether there is risk of dissipation – defendants' conduct in inflicting economic damage on plaintiff or trust assets – unexplained ongoing expenditure of large round sums – held, reasonable apprehension that assets of trust may not be preserved – general discretionary considerations – prejudice and inconvenience of injunction relatively slight

COSTS – where defendants made open offers – where it is presently unknown whether plaintiff has bettered offer – whether plaintiff acted unreasonably in rejecting offer Legislation Cited: (CTH) Corporations Act 2001, s 237 Cases Cited: Ninemia Martini Corporation v Trave Schiffahrtsgesellschaft GmbH [1984] 1 AllER 398 Westpac Bank Incorporation v McArthur [2007] NSWSC 1347 Category: Principal judgment Parties: Tracy Xiaowen Cui (plaintiff) Cui Family Asset Management Pty Limited (first defendant) Gondon Five Pty Limited (second defendant) Jinsong Cui (third defendant) Arise Constructions Pty Limited (fourth defendant) Representation: Counsel: K Andronos SC w J Clark (plaintiff) D Pritchard SC w L Chapman (defendants)