Li v Hanson Property Developments Pty Ltd [2016] NSWSC 1870

Li v Hanson Property Developments Pty Ltd [2016] NSWSC 1870

The Court held that notwithstanding the defendants’ breach of court orders and failure to attend the hearing, the justice of the case required allowing them to be heard and setting aside the 8 August 2016 orders because the plaintiff conceded the defendants have an arguable defence, the application to set aside was promptly made, the breach was explained and apologised for, and prejudice to the defendants outweighed prejudice to the plaintiff. The Court also allowed variation of the previous orders to secure the plaintiff's interests.

Jurisdiction
Australia
Judgment Date
20 December 2016
Procedural Posture
Equity / Application to Set Aside Orders; Procedural Hearing
Outcome
Orders of 2 July 2014 varied; declarations and orders of 8 August 2016 set aside
Legal Topics
['application to Set Aside Orders Made in Absence' 'breach of Earlier Court Orders' 'entitlement to Be Heard' 'contempt and Party’s Right to Be Heard' 'failure to Attend Hearing' 'oppressed Shareholder Remedy' 'winding Up']
['practice and Procedure'] ['application to Set Aside Orders Made in Absence' 'breach of Earlier Court Orders' 'entitlement to Be Heard' 'contempt and Party’s Right to Be Heard' 'failure to Attend Hearing' 'oppressed Shareholder Remedy' 'winding Up']

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Procedural Posture

Equity / Application to Set Aside Orders; Procedural Hearing

Legal Issues

  1. 1 ['Whether the defendants are entitled to be heard on an application to set aside or vary orders while in breach of court orders' 'Whether the explanation for not attending the hearing was adequate' 'Whether the 8 August 2016 orders should be set aside' 'Whether the defendants’ breaches were contumelious or excused']

Ratio Decidendi

The Court held that notwithstanding the defendants’ breach of court orders and failure to attend the hearing, the justice of the case required allowing them to be heard and setting aside the 8 August 2016 orders because the plaintiff conceded the defendants have an arguable defence, the application to set aside was promptly made, the breach was explained and apologised for, and prejudice to the defendants outweighed prejudice to the plaintiff. The Court also allowed variation of the previous orders to secure the plaintiff's interests.

Court Disposition

Orders of 2 July 2014 varied; declarations and orders of 8 August 2016 set aside

Orders

  • ["Vary the 2 July 2014 orders as proposed in the defendants' notice of motion of 17 November 2016, including alternative security for $300,000 via charging the Macgregor property and limiting the orders to future sales." 'Set aside the 8 August 2016 orders made by Lindsay J.' 'Cost order in favour of Mr Chi for...