Ludwig v Jeffrey [2019] NSWSC 1550

Supreme Court New South Wales

Medium Neutral Citation: Ludwig v Jeffrey [2019] NSWSC 1550 Hearing dates: 18 October 2019 Date of orders: 08 November 2019 Decision date: 08 November 2019 Jurisdiction: Equity Before: Slattery J Decision: Proceedings not stayed. Directions made for the further conduct of the proceedings. Costs of the motion reserved. Proceedings referred for Court annexed mediation. Catchwords: PRACTICE AND PROCEDURE – stay of proceedings under Civil Procedure Act 2005, s 67 – the plaintiffs and the defendant are registered proprietors as joint tenants of real estate held under Real Property Act 1900 – defendant concedes that he holds his interest as joint tenant on trust for the plaintiffs – plaintiffs seek transfer of the defendant's interests as joint tenant to them – plaintiffs and defendant accept that the plaintiff must indemnify the defendant in respect of his holding of the trust property – transfer of the trust property by the defendant to the plaintiffs may cause the defendant to incur capital gains tax ("CGT") liability – defendant seeks private binding ruling from Commissioner of Taxation and seeks a stay of proceedings until the ruling is available – plaintiffs say proceedings should continue and that trust property be transferred to them – whether or not the proceedings should be stayed pending receipt of the private binding ruling. Legislation Cited: Civil Procedure Act 2005, s 67 Income Tax Assessment Act 1997 (Cth) Taxation Administration Act 1953 (Cth), Schedule 1, Part 5-5 Cases Cited: Balkin v Peck (1998) 43 NSWLR 706 Commissioner of Taxation v Australian Building Systems Pty Ltd (in liq) (2015) 257 CLR 544 Lym International Pty Ltd v Westpac Banking Corporation [2011] NSWSC 927 Saunders v Vautier (1841) 4 Beav 115 Taras Nominees Pty Ltd as Trustee for Burnley Street Trust v Commissioner of Taxation (2015) 228 FCR 418 Category: Procedural rulings Parties: First Plaintiff/respondent: Joanne Elizabeth Ludwig Second Plaintiff/respondent: Robert Walter Ludwig Defendant/applicant: Lynton Barrett Jeffrey Representation: Counsel: Plaintiffs/respondents: J. R. B. Pearson Defendant/applicant: C.T. Ensor