In the matter of Mycorp Pty Ltd [2014] NSWSC 1180

In the matter of Mycorp Pty Ltd [2014] NSWSC 1180

The Court found that Mr Fajloun was in contempt for withdrawing $34,000 and $33,999 from company accounts contrary to consent orders. As those orders formed part of a contractual bargain, the Court may enter summary judgment for restitution of amounts withdrawn. Considering mitigating factors, including good character, financial hardship, and provided services, a fine was not warranted. An order for indemnity costs against the Plaintiff was a sufficient penalty in the circumstances.

Jurisdiction
Australia
Judgment Date
27 August 2014
Procedural Posture
Interlocutory Application / Penalty Determination After Finding of Contempt
Outcome
Judgment for relevant Defendants against Plaintiff for specified amounts plus interest; indemnity costs order for First Defendant; orders deferred for seven days to allow parties to address form.
Legal Topics
['civil Contempt' 'penalty for Breach of Court Order' 'indemnity Costs' 'implied Contract' 'return of Misappropriated Funds']
['corporations' 'civil Procedure' 'equity'] ['civil Contempt' 'penalty for Breach of Court Order' 'indemnity Costs' 'implied Contract' 'return of Misappropriated Funds']

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Procedural Posture

Interlocutory Application / Penalty Determination After Finding of Contempt

Legal Issues

  1. 1 ["Whether orders may be made for return of monies to companies' bank accounts" 'Whether the orders made by consent constituted an implied contract between the parties' 'Appropriate penalty for civil contempt' 'Whether indemnity costs constitute sufficient penalty']

Ratio Decidendi

The Court found that Mr Fajloun was in contempt for withdrawing $34,000 and $33,999 from company accounts contrary to consent orders. As those orders formed part of a contractual bargain, the Court may enter summary judgment for restitution of amounts withdrawn. Considering mitigating factors, including good character, financial hardship, and provided services, a fine was not warranted. An order for indemnity costs against the Plaintiff was a sufficient penalty in the circumstances.

Court Disposition

Judgment for relevant Defendants against Plaintiff for specified amounts plus interest; indemnity costs order for First Defendant; orders deferred for seven days to allow parties to address form.

Orders

  • ['Judgment in favour of the Second Defendant against the Plaintiff in the amount of $34,000 together with prescribed interest.' 'Judgment in favour of the Third Defendant against the Plaintiff in the amount of $33,999 together with prescribed interest.' "Plaintiff to pay First Defendant's costs of the Notice of...