Edward Ted Lakis and Anor v Michael Victor Lardis and Anor [2017] NSWSC 321

Edward Ted Lakis and Anor v Michael Victor Lardis and Anor [2017] NSWSC 321

The transfer of 49% of Mr Lardis's interest in the Dolls Point Property to Mrs Lardis on 29 January 2013 was made with intent to defraud, hinder or delay creditors within the meaning of s 37A. The transfer was voluntary, not for valuable consideration, and designed to put the property beyond the reach of potential creditor claims, namely Amazon and Mr Lakis. Mrs Lardis was not a purchaser in good faith without notice. Therefore, the transfer is voidable at the Plaintiffs' instance.

Parties
First Plaintiff: Edward Ted Lakis; Second Plaintiff: Amazon Pest Control Pty Ltd (In Liq) ACN 092 833 531; First Defendant: Michael Victor Lardis; Second Defendant: Athena Lardis
Jurisdiction
Australia
Judgment Date
31 March 2017
Procedural Posture
Civil / Final Judgment
Outcome
Plaintiffs succeed—transfer voidable under s 37A; orders to be heard further.
Legal Topics
Fraudulent Conveyance, Alienation of Property, Voidable Transactions, Intention to Defraud Creditors, Purchaser in Good Faith, Creditors’ Rights
Property Law Bankruptcy and Insolvency Equity Fraudulent Conveyance Alienation of Property Voidable Transactions Intention to Defraud Creditors Purchaser in Good Faith +1 more

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Parties

Edward Ted Lakis

First Plaintiff

Amazon Pest Control Pty Ltd (In Liq) ACN 092 833 531

Second Plaintiff

Michael Victor Lardis

First Defendant

Athena Lardis

Second Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether the transfer of 49% interest in property by Mr Lardis to Mrs Lardis was with intent to defraud creditors and voidable under s 37A of the Conveyancing Act 1919 (NSW)
  2. 2 Whether Mrs Lardis was a purchaser in good faith without notice of intent to defraud creditors within s 37A(3) of the Conveyancing Act 1919 (NSW)
  3. 3 Determination of the relevant date of alienation for voidability under s 37A

Ratio Decidendi

The transfer of 49% of Mr Lardis's interest in the Dolls Point Property to Mrs Lardis on 29 January 2013 was made with intent to defraud, hinder or delay creditors within the meaning of s 37A. The transfer was voluntary, not for valuable consideration, and designed to put the property beyond the reach of potential creditor claims, namely Amazon and Mr Lakis. Mrs Lardis was not a purchaser in good faith without notice. Therefore, the transfer is voidable at the Plaintiffs' instance.

Court Disposition

Plaintiffs succeed—transfer voidable under s 37A; orders to be heard further.