Aho v HBU LEFTA 2101 Pty Ltd [2024] NSWSC 1195

Aho v HBU LEFTA 2101 Pty Ltd [2024] NSWSC 1195

The plaintiffs are entitled to a freezing order restraining the first defendant from using the funds in the Bank Account for purposes other than paying its reasonable legal expenses up to $30,000 and its other business expenses bona fide and properly incurred in the ordinary and proper course of business, as such use without restraint would be in breach of cl 10.3 of the JVA and cause irreparable harm, and the balance of convenience favours maintenance of the restraint.

Parties
First Plaintiff: Amanaki Lelei Aho; Second Plaintiff: Palinda Aho; Third Plaintiff: Maria Asopesia; Fourth Plaintiff: Priscilla Lupe Aho; First Defendant: HBU LEFTA 2101 PTY LIMITED; Second Defendant: Paull Edward Chaffey; Third Defendant: Steven Roger Chandler
Jurisdiction
Australia
Judgment Date
20 September 2024
Procedural Posture
Interlocutory Application / Application to Vary/discharge Freezing Orders Orders and Reasons for Judgment
Outcome
Application to discharge freezing orders dismissed; variation to freeze only the Bank Account granted
Legal Topics
Freezing Orders, Asset Preservation, Interlocutory Injunction
Equity Civil Procedure Freezing Orders Asset Preservation Interlocutory Injunction

Case Brief

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Parties

Amanaki Lelei Aho

First Plaintiff

Palinda Aho

Second Plaintiff

Maria Asopesia

Third Plaintiff

Priscilla Lupe Aho

Fourth Plaintiff

HBU LEFTA 2101 PTY LIMITED

First Defendant

Paull Edward Chaffey

Second Defendant

Steven Roger Chandler

Third Defendant

Procedural Posture

Interlocutory Application / Application to Vary/discharge Freezing Orders Orders and Reasons for Judgment

Legal Issues

  1. 1 Whether the freezing orders should be varied or discharged in relation to the Bank Account held by the first defendant
  2. 2 Whether HBU can use the Bank Account funds to pay its legal and business expenses in light of joint venture agreement restrictions

Ratio Decidendi

The plaintiffs are entitled to a freezing order restraining the first defendant from using the funds in the Bank Account for purposes other than paying its reasonable legal expenses up to $30,000 and its other business expenses bona fide and properly incurred in the ordinary and proper course of business, as such use without restraint would be in breach of cl 10.3 of the JVA and cause irreparable harm, and the balance of convenience favours maintenance of the restraint.

Court Disposition

Application to discharge freezing orders dismissed; variation to freeze only the Bank Account granted

Orders

  • The Bank Account 082-201 75 620 2905 held by the First Defendant with National Australia Bank Ltd at Chatswood is frozen until further order, with exceptions for payment of reasonable legal expenses up to $30,000 and bona fide business expenses incurred in the ordinary course of business.
  • List the matter for directions before the Equity Registrar on 26 September 2024.