Lewis v Nortex Pty Ltd (In Liq); Lamru Pty Ltd v Kation Pty Ltd [2004] NSWSC 1238

Lewis v Nortex Pty Ltd (In Liq); Lamru Pty Ltd v Kation Pty Ltd [2004] NSWSC 1238

The Court ordered the release of funds because, although there was substance in the Lewis interests' submissions about Ecodownunder's improved position, the legal fees were for work to be completed by the end of the week, it was not reasonable for counsel to wait until the end of January and the contingency of stock sales, the business remained modest with only recent and marginal profit, and liabilities to Mr Ower remained at least $60,000 and perhaps $120,000, so funds were not realistically available from Ecodownunder for payment of the legal fees.

Jurisdiction
Australia
Judgment Date
15 December 2004
Procedural Posture
Application for Further Release of Moneys Held Under Mareva Orders / Interlocutory Application
Outcome
Application granted; costs reserved.
Legal Topics
['mareva Injunctions' 'interlocutory Injunctions' 'release of Restrained Funds for Litigation Costs' 'availability of Funds From Other Sources']
['equity'] ['mareva Injunctions' 'interlocutory Injunctions' 'release of Restrained Funds for Litigation Costs' 'availability of Funds From Other Sources']

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Procedural Posture

Application for Further Release of Moneys Held Under Mareva Orders / Interlocutory Application

Legal Issues

  1. 1 ["Whether further money should be released from the fund held under Mareva orders to pay Mr Motbey's fees." "Whether funds were realistically available from Ecodownunder's business as an alternative source for payment of the legal fees." "Whether costs of the application should be ordered in Lamru's favour or reserved."]

Ratio Decidendi

The Court ordered the release of funds because, although there was substance in the Lewis interests' submissions about Ecodownunder's improved position, the legal fees were for work to be completed by the end of the week, it was not reasonable for counsel to wait until the end of January and the contingency of stock sales, the business remained modest with only recent and marginal profit, and liabilities to Mr Ower remained at least $60,000 and perhaps $120,000, so funds were not realistically available from Ecodownunder for payment of the legal fees.

Court Disposition

Application granted; costs reserved.

Orders

  • ['Funds are to be released as sought from the fund held under Mareva orders.' 'The costs of the application are reserved.']