Supreme Court New South Wales Medium Neutral Citation: CPPIB Credit Investments Inc v Ren (No 2) [2018] NSWSC 1016 Hearing dates: 29 June 2018 Decision date: 29 June 2018 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Applicant's notice of motion is dismissed with costs Catchwords: CIVIL PROCEDURE – Cross-vesting – s 6 of the Jurisdiction of Courts (Cross-vesting) Act – whether these proceedings have become a special federal matter – whether transfer could be made to the Federal Circuit Court Legislation Cited: Family Law Act 1975 (Cth) Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth) Cases Cited: CPPIB Credit Investments Inc v Ren [2017] NSWSC 771 Category: Procedural and other rulings Parties: CPPIB Credit Investments Inc (Plaintiff/Respondent) Jerry Ren (Defendant) Xia Kong (Interested Party/Applicant) Representation: Counsel: G E S Ng (Plaintiff/Respondent) B J Skinner (Interested Party/Applicant) Solicitors: Ashurst Australia (Plaintiff/Respondent) Manning Lawyers (Interested Party/Applicant) File Number(s): SC 2017/109259 EX TEMPORE Judgment (REVISED) 1. On 28 April 2017 Ball J made a freezing order against the defendant, Mr Ren, and also against his wife Ms Xia Kong. The order restrained them from disposing of a property that they jointly own at Warrawee. 2. The freezing order did not prohibit Mr Ren and Ms Kong from entering into a contract to sell the Warrawee property, provided that the proceeds of sale were paid into Court. 3. On 16 June 2017 Ball J dismissed an application by Ms Kong to set aside the freezing order: CPPIB Credit Investments Inc v Ren [2017] NSWSC 771. 4. On 28 July 2017 McDougall J entered default judgment in favour of the plaintiff against Mr Ren in the sum of US$51,908,071.40. 5. On or about 22 November 2017 the Federal Circuit Court (Judge Harper) ordered that the Registrar of that Court execute on Mr Ren's behalf a transfer to Ms Kong of the Warrawee property. That order was made by reason of an agreement made on 4 March 2016 between Mr Ren and Ms Kong, purportedly under s 90C of the Family Law Act 1975 (Cth) by which Mr Ren had agreed to transfer his interest in the Warrawee property to Ms Kong. 6. Mr Ren became bankrupt on 5 April 2018. 7. On 10 April 2018 Ms Kong entered into a contract to sell the Warrawee property to a third party. 8. In early June the purchaser purported to rescind the contract. 9. In the meantime Ms Kong served on the purchaser a notice to complete which called for completion on or about 10 June 2018. 10. There the matter rests. 11. By notice of motion filed on 21 June 2018 Ms Kong seeks an order pursuant to s 6 of the Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth) transferring these proceedings to the Federal Circuit Court of Australia. 12. I see two difficulties with that application. 13. The first is that my jurisdiction to act under s 6 of the Jurisdiction of Courts (Cross-vesting) Act only arises if there is pending in this Court a "special federal matter". Proceedings concerning the bankruptcy of Mr Ren would be a "special federal matter". However I do not see how his bankruptcy converts these proceedings into a "special federal matter". 14. The second is that I am only empowered by s 6 to transfer the proceedings to the Federal Court or to the courts named in s 6(2)(b) of that Act. 15. By reason of what appears to be an astonishing legislative oversight, the Federal Circuit Court is not named as a court to which a transfer can be made under s 6. 16. Mr Skinner foreshadowed that if that were the only difficulty, he would seek to amend the notice of motion to have the proceedings transferred to the Federal Court. However, as there are no proceedings in which Ms Kong is involved in the Federal Court, I cannot see the utility in that course. Orders 1. Mr Ng, who appears for the plaintiff, seeks an order that costs be paid on an indemnity basis. He points to a letter his instructors sent Ms Kong's solicitors which, in effect, foreshadows the resolution of this application as I have dealt with it. I see the force of the submission. However, I do not propose to order indemnity costs. 2. I order that the applicant's notice of motion filed 21 June 2018 be dismissed with costs. ********** DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 02 July 2018