TZ Ltd v ZMS Investments Pty Ltd [2009] NSWSC 1465

TZ Ltd v ZMS Investments Pty Ltd [2009] NSWSC 1465

The first defendant ZMS Investments Pty Ltd, by the intentional conduct of its director Andrew John Sigalla in instructing the exchange of contracts for sale of Unit 6 in breach of clear and unambiguous freezing orders, committed a deliberate civil contempt. Mr Sigalla was also found personally in contempt due to his direct involvement and knowledge of the breach. Their conduct warranted fines and indemnity costs to enforce compliance with the court's authority.

Jurisdiction
Australia
Judgment Date
23 December 2009
Procedural Posture
Civil Contempt Application / Judgment After Hearing on Contempt Motion
Outcome
Contempt by first and third defendants found; both severally fined $5,000; first and third defendants jointly and severally to pay costs of application on indemnity basis
Legal Topics
['civil Contempt' 'compliance With Court Orders' 'freezing Orders' 'corporate Liability' 'director Liability']
['equity' 'corporations'] ['civil Contempt' 'compliance With Court Orders' 'freezing Orders' 'corporate Liability' 'director Liability']

Case Brief

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Procedural Posture

Civil Contempt Application / Judgment After Hearing on Contempt Motion

Legal Issues

  1. 1 ['Whether ZMS Investments Pty Ltd and Andrew John Sigalla were in contempt of court by breaching freezing orders' 'Whether their conduct was deliberate and constituted civil contempt' 'Appropriate punishment and costs for contempt']

Ratio Decidendi

The first defendant ZMS Investments Pty Ltd, by the intentional conduct of its director Andrew John Sigalla in instructing the exchange of contracts for sale of Unit 6 in breach of clear and unambiguous freezing orders, committed a deliberate civil contempt. Mr Sigalla was also found personally in contempt due to his direct involvement and knowledge of the breach. Their conduct warranted fines and indemnity costs to enforce compliance with the court's authority.

Court Disposition

Contempt by first and third defendants found; both severally fined $5,000; first and third defendants jointly and severally to pay costs of application on indemnity basis

Orders

  • ['ZMS Investments Pty Ltd and Andrew John Sigalla declared guilty of contempt' 'ZMS Investments Pty Ltd fined $5,000' 'Andrew John Sigalla fined $5,000' "ZMS Investments Pty Ltd and Andrew John Sigalla jointly and severally to pay applicant's costs of application on indemnity basis"]