CLGC Pty Ltd v Zhang (No 3) [2025] NSWSC 36

CLGC Pty Ltd v Zhang (No 3) [2025] NSWSC 36

Given the objective seriousness and high culpability in deliberate and contumacious breach of court orders and undertaking, but weighing the respondent's mental illness, vulnerability, genuine contrition, and lack of public defiance, the appropriate penalty is six months imprisonment wholly suspended for one year on conditions: good behaviour, community service (40 hours subject to suitability), compliance with mental health treatment plan, and application for removal from Victoria solicitor roll.

Parties
First Plaintiff/applicant: CLGC Pty Ltd; Second Plaintiff: CLGC Australia Pty Ltd; Third Plaintiff: CLGC Investment Pty Ltd; Fourth Plaintiff: CLGC Investment Holdings Pty Ltd; First Defendant/respondent: Ronglai (Martin) Zhang
Jurisdiction
Australia
Judgment Date
10 February 2025
Procedural Posture
Contempt Proceedings / Sentencing/penalty
Outcome
Six months imprisonment wholly suspended for one year on conditions of bond for good behaviour, community service, supervision, medical compliance, and removal from solicitor roll; stay granted pending appeal; costs ordered on ordinary basis.
Legal Topics
Contumacious Breach of Court Orders, Penalty for Contempt, Freezing Orders, Undertaking to the Court, Sentencing, Suspended Imprisonment, Mental Health in Sentencing, Community Service
Equity Criminal Contempt Contumacious Breach of Court Orders Penalty for Contempt Freezing Orders Undertaking to the Court Sentencing Suspended Imprisonment +2 more

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Parties

CLGC Pty Ltd

First Plaintiff/applicant

CLGC Australia Pty Ltd

Second Plaintiff

CLGC Investment Pty Ltd

Third Plaintiff

CLGC Investment Holdings Pty Ltd

Fourth Plaintiff

Ronglai (Martin) Zhang

First Defendant/respondent

Procedural Posture

Contempt Proceedings / Sentencing/penalty

Legal Issues

  1. 1 What is the appropriate penalty for criminal contempt involving breach of freezing orders and a court undertaking?
  2. 2 Is an immediate custodial sentence warranted or should it be suspended on conditions due to the contemnor's circumstances?
  3. 3 Does mental illness and personal vulnerability mitigate sentencing for contempt?

Ratio Decidendi

Given the objective seriousness and high culpability in deliberate and contumacious breach of court orders and undertaking, but weighing the respondent's mental illness, vulnerability, genuine contrition, and lack of public defiance, the appropriate penalty is six months imprisonment wholly suspended for one year on conditions: good behaviour, community service (40 hours subject to suitability), compliance with mental health treatment plan, and application for removal from Victoria solicitor roll.

Court Disposition

Six months imprisonment wholly suspended for one year on conditions of bond for good behaviour, community service, supervision, medical compliance, and removal from solicitor roll; stay granted pending appeal; costs ordered on ordinary basis.

Orders

  • Ronglai Zhang sentenced to six months imprisonment suspended upon entering into bond for one year with conditions: consent to supervision by Corrective Services NSW; obey directions; no interstate/overseas travel without permission; attend interviews and assessments; perform 40 hours community service (subject to...
  • Corrective Services NSW to supervise for term of bond; may suspend/reinstate supervision; notify Court on non-compliance.