Chu v Lin, in the matter of Gold Stone Capital Pty Ltd (No 8) [2024] FCA 1520

Chu v Lin, in the matter of Gold Stone Capital Pty Ltd (No 8) [2024] FCA 1520

Given the prima facie case, the uncertainty over the impact of proposed works on property value, possible diminution and removal of market segments, combined with the limited duration of further restraint and adequate protection by the undertaking as to damages, the balance of convenience favours extension of the freezing order to prevent works pending the next hearing.

Parties
First Plaintiff and First Applicant: Hong Chu; Second Plaintiff and Second Applicant: Xueping Chu; First Defendant: Louise Carol Lin; Second Defendant: Hai Zong Cai; Third Defendant and Seventh Respondent: David Darmali; Fourth Defendant: Fiducia Asset Management Pty Ltd; Fifth Defendant: Xiao Wu; Sixth Defendant: Josephine Darmali; Seventh Defendant: Gold Stone Capital Pty Ltd ACN 167 931 026; First Respondent: Haiming Cai; Second Respondent: Jia Liu; Third Respondent: Sunshine Cladding Pty Ltd ACN 655 442 130; Fifth Respondent: Chu Li; Sixth Respondent: Silver Altum Pty Ltd ACN 679 122 644
Jurisdiction
Australia
Judgment Date
23 December 2024
Procedural Posture
Interlocutory Application (freezing Order) / Application for Expansion of Freezing Order Prior to Hearing of Appeal
Outcome
Application granted. Expansion of existing freezing order until 11 February 2025. Costs reserved.
Legal Topics
Freezing Orders, Balance of Convenience, Bankruptcy Act S 121, Construction and Property Dealings, Interlocutory Relief
Practice and Procedure Insolvency Corporate Law Freezing Orders Balance of Convenience Bankruptcy Act S 121 Construction and Property Dealings Interlocutory Relief

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Parties

Hong Chu

First Plaintiff and First Applicant

Xueping Chu

Second Plaintiff and Second Applicant

Louise Carol Lin

First Defendant

Hai Zong Cai

Second Defendant

David Darmali

Third Defendant and Seventh Respondent

Fiducia Asset Management Pty Ltd

Fourth Defendant

Xiao Wu

Fifth Defendant

Josephine Darmali

Sixth Defendant

Gold Stone Capital Pty Ltd ACN 167 931 026

Seventh Defendant

Haiming Cai

First Respondent

Jia Liu

Second Respondent

Sunshine Cladding Pty Ltd ACN 655 442 130

Third Respondent

Chu Li

Fifth Respondent

Silver Altum Pty Ltd ACN 679 122 644

Sixth Respondent

Procedural Posture

Interlocutory Application (freezing Order) / Application for Expansion of Freezing Order Prior to Hearing of Appeal

Legal Issues

  1. 1 Whether to expand an existing freezing order to restrain respondents from performing building works and other dealings with subject property pending further hearing
  2. 2 Whether balance of convenience favours the expansion

Ratio Decidendi

Given the prima facie case, the uncertainty over the impact of proposed works on property value, possible diminution and removal of market segments, combined with the limited duration of further restraint and adequate protection by the undertaking as to damages, the balance of convenience favours extension of the freezing order to prevent works pending the next hearing.

Court Disposition

Application granted. Expansion of existing freezing order until 11 February 2025. Costs reserved.

Orders

  • Chu Li and Silver Altum Pty Ltd are restrained from dealing with, selling, encumbering, or performing building, demolition, or construction works to 33A Kings Road, Vaucluse, NSW until 5:00pm on 11 February 2025.
  • Interlocutory process adjourned to 9:00am on 11 February 2025.