De Rucci International Pty Ltd v Zhu [2019] NSWSC 1375

Supreme Court New South Wales

Medium Neutral Citation: De Rucci International Pty Ltd v Zhu [2019] NSWSC 1375 Hearing dates: 8, 9 & 10 October 2019 Date of orders: 11 October 2019 Decision date: 11 October 2019 Before: Slattery J Decision: Orders made to continue the existing regime whereby stock is left with the second defendant for sale and proceeds are paid into a nominated bank account. Some allowance is made for first and second defendants to apply the proceeds of sale of the stock. Costs reserved. Catchwords: CIVIL PROCEDURE – Interlocutory applications – plaintiff supplies furniture and bedding to retail stores – plaintiff seeks interlocutory relief for the removal of certain stock from premises leased to the second defendant – defendants resist the relief sought – plaintiff signed Management Agreement with third defendant – third defendant now deregistered –evidence that the plaintiff has accepted second defendant as the active counterparty to the Management Agreement after the deregistration of the third defendant – first defendant controls second defendant – Management Agreement authorises plaintiff to conduct the operation of the third defendant's then the second defendant's business – second defendant terminates Management Agreement – issue as to who owns the stock at the premises leased by the second defendant – is there a serious question to be tried – what is the balance of convenience. Legislation Cited: Supreme Court Act 1970, s 66(4) Cases Cited: Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57; [2006] HCA 46 Beecham Group Limited v Bristol Laboratories Pty Limited (1968) 118 CLR 618 Beese v Woodhouse [1970] 1 WLR 586 Francome v Mirror Group Newspapers Ltd [1984] 1 WLR 892 Kolback Securities Ltd v Epoch Mining (1987) 8 NSWLR 533 McCarty v Council of the Municipality of North Sydney (1918) 18 SR (NSW) 210 Texts Cited: Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed 2014, LexisNexis Butterworths) Category: Procedural and other rulings Parties: Plaintiff: Lisa King, Direct Solicitors First Defendant: Lucy Zhu (in person) Second Defendant: HQ Living Pty Ltd Third Defendant: Singways (Moore Park) Pty Ltd Representation: Counsel: