Lu v Man [2019] FCA 1512

Lu v Man [2019] FCA 1512

Default judgment was granted because sworn, uncontradicted evidence showed that Mr Li and Sunshine Energy had been served or had the relevant material brought to their attention and had failed to comply with orders 5(a) and 5(b) of the June Orders; no adequate explanation for non-compliance was provided; the adjournment request was not justified by the medical certificate; and the elapsed time since the June Orders supported the applicants' entitlement to the relief sought under r 5.23(2)(c).

Jurisdiction
Australia
Judgment Date
12 September 2019
Procedural Posture
Commercial and Corporations Proceeding; Commercial Contracts, Banking, Finance and Insurance / Interlocutory Application for Default Judgment
Outcome
Default judgment entered in favour of the applicants; orders made requiring share transfer, register correction, ASIC notification, and costs against Mr Li.
Legal Topics
['default Judgment' 'non Compliance With Court Orders' 'share Transfer' 'correction of Register of Members' 'adjournment Request']
['commercial and Corporations' 'civil Procedure' 'corporations Law'] ['default Judgment' 'non Compliance With Court Orders' 'share Transfer' 'correction of Register of Members' 'adjournment Request']

Case Brief

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Procedural Posture

Commercial and Corporations Proceeding; Commercial Contracts, Banking, Finance and Insurance / Interlocutory Application for Default Judgment

Legal Issues

  1. 1 ['Whether default judgment should be entered against Mr Li and Sunshine Energy for failure to comply with orders made on 18 June 2019.' "Whether Mr Li's request for an adjournment supported by a medical certificate warranted delaying the hearing." "Whether the applicants were entitled to orders requiring transfer of Sunshine Energy shares to Eastern Union and correction of Sunshine Energy's register of members."]

Ratio Decidendi

Default judgment was granted because sworn, uncontradicted evidence showed that Mr Li and Sunshine Energy had been served or had the relevant material brought to their attention and had failed to comply with orders 5(a) and 5(b) of the June Orders; no adequate explanation for non-compliance was provided; the adjournment request was not justified by the medical certificate; and the elapsed time since the June Orders supported the applicants' entitlement to the relief sought under r 5.23(2)(c).

Court Disposition

Default judgment entered in favour of the applicants; orders made requiring share transfer, register correction, ASIC notification, and costs against Mr Li.

Orders

  • ['Pursuant to Rule 5.23(2)(c) of the Federal Court Rules 2011 (Cth), the First Respondent, Mr Li, forthwith take all necessary steps to transfer all of the shares in Sunshine Energy that he holds to Eastern Union.' 'Upon compliance with order 1, pursuant to s 175(1) of the Corporations Act 2001 (Cth), Sunshine...