In the matter of Black Eagle Media Pty Ltd [2014] NSWSC 1778

In the matter of Black Eagle Media Pty Ltd [2014] NSWSC 1778

Given BEM's good arguable case, the evidence of an unexplained increase in Mr Gabrielian's indebtedness, and the element of concealment in prior dealings, there exists a sufficient risk of dissipation of assets to justify continuation of a freezing order. However, the restraint must be limited to the likely maximum of BEM's claim (here, $70,000 plus interest and costs) and include the usual exceptions for payment of reasonable living and legal expenses, rather than restraining the entire value of Mr Gabrielian's assets or property.

Jurisdiction
Australia
Judgment Date
12 December 2014
Procedural Posture
Interlocutory Application / Contested Application to Extend or Reinstate Freezing Order; Post Initial and Consent Freezing Orders; Before Substantive Hearing
Outcome
Form of freezing order originally made on 2 July 2014 and continued on 4 July 2014 to be reinstated, with adjustment, subject to the usual exceptions for reasonable living and legal expenses. Parties to be heard briefly as to costs.
Legal Topics
['freezing Orders' 'injunctions' "directors' Duties" 'equitable Remedies' 'civil Procedure']
['equity' 'corporations'] ['freezing Orders' 'injunctions' "directors' Duties" 'equitable Remedies' 'civil Procedure']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Interlocutory Application / Contested Application to Extend or Reinstate Freezing Order; Post Initial and Consent Freezing Orders; Before Substantive Hearing

Legal Issues

  1. 1 ['Whether the applicant (BEM) has a good arguable case for relief against the defendant under ss 180-183 of the Corporations Act 2001 (Cth) and for interlocutory relief under ss 1323, 1324 of that Act or under UCPR r 25.14' 'Whether there is a danger that judgment will be wholly or partly unsatisfied unless a freezing order is continued or reinstated' 'Whether discretionary or equitable considerations justify continuing, discharging, or narrowing the freezing order']

Ratio Decidendi

Given BEM's good arguable case, the evidence of an unexplained increase in Mr Gabrielian's indebtedness, and the element of concealment in prior dealings, there exists a sufficient risk of dissipation of assets to justify continuation of a freezing order. However, the restraint must be limited to the likely maximum of BEM's claim (here, $70,000 plus interest and costs) and include the usual exceptions for payment of reasonable living and legal expenses, rather than restraining the entire value of Mr Gabrielian's assets or property.

Court Disposition

Form of freezing order originally made on 2 July 2014 and continued on 4 July 2014 to be reinstated, with adjustment, subject to the usual exceptions for reasonable living and legal expenses. Parties to be heard briefly as to costs.

Orders

  • ['The freezing order restraining Mr Gabrielian from dealing with his assets in Australia below the unencumbered value of $70,000 plus adjustment for interest and costs, subject to usual exceptions for payment of reasonable living expenses and legal expenses, is reinstated.' 'Costs to be costs in the cause; parties...