Helena Hu v PS Securities Pty Ltd as trustee of the Joseph Family Trust & anor [2011] NSWSC 98

Helena Hu v PS Securities Pty Ltd as trustee of the Joseph Family Trust & anor [2011] NSWSC 98

There is a sufficiently arguable case that Ms Hu may claim subrogation to Alphena's right of indemnity from the trust assets to satisfy the judgment debt, and a reasonable apprehension of risk that PS Securities may deal with the assets so as to frustrate satisfaction of the judgment. Accordingly, a freezing order is justified and discretionary considerations favour its grant.

Jurisdiction
Australia
Judgment Date
02 March 2011
Procedural Posture
Interlocutory Application / Application for Freezing Order, Pending Further Proceedings
Outcome
Freezing order granted
Legal Topics
['freezing Order' 'right of Indemnification of Trustee' "subrogation of Creditor to Trustee's Right" 'liquidation and Insolvency' 'standing of Creditor' 'uniform Civil Procedure Rules 25.11']
['civil Procedure' 'trusts and Equity' 'insolvency Law'] ['freezing Order' 'right of Indemnification of Trustee' "subrogation of Creditor to Trustee's Right" 'liquidation and Insolvency' 'standing of Creditor' 'uniform Civil Procedure Rules 25.11']

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Procedural Posture

Interlocutory Application / Application for Freezing Order, Pending Further Proceedings

Legal Issues

  1. 1 ['Whether the plaintiff has standing to seek a freezing order over trust assets post-liquidation of the former trustee' "Whether the plaintiff's lodgment of a proof of debt precludes a claim of subrogation to the former trustee's right of indemnity out of trust assets" 'Whether there is a real risk of dissipation of assets justifying a freezing order']

Ratio Decidendi

There is a sufficiently arguable case that Ms Hu may claim subrogation to Alphena's right of indemnity from the trust assets to satisfy the judgment debt, and a reasonable apprehension of risk that PS Securities may deal with the assets so as to frustrate satisfaction of the judgment. Accordingly, a freezing order is justified and discretionary considerations favour its grant.

Court Disposition

Freezing order granted

Orders

  • ["Freezing order made in accordance with the standard form, with liberty to apply on three days' notice to discharge or vary the order."]