Gordon v Glowberth Pty Ltd [2024] NSWSC 104

Gordon v Glowberth Pty Ltd [2024] NSWSC 104

The ex parte freezing orders were set aside due to Mr Gordon's material non-disclosure of his prior bankruptcy when seeking the initial orders. However, because Mr Gordon promptly sought orders afresh and demonstrated a good arguable case, a real risk of asset dissipation, and at least an arguable standing, new freezing orders were considered appropriate subject to modification of permissible legal expenses.

Parties
Plaintiff: Jerry Gordon; First Defendant: Glowberth Pty Ltd; Second Defendant: Official Trustee in Bankruptcy
Jurisdiction
Australia
Judgment Date
15 February 2024
Procedural Posture
Application to Discharge and Re Make Freezing Orders in Equity Proceedings / Interlocutory Determination
Outcome
Ex parte freezing orders discharged; new form of freezing orders to be made
Legal Topics
Freezing Orders, Interim Preservation, Standing of Bankrupts, Disclosure Obligations, Breach of Contract, Residential Tenancy
Equity Civil Procedure Freezing Orders Interim Preservation Standing of Bankrupts Disclosure Obligations Breach of Contract Residential Tenancy

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Parties

Jerry Gordon

Plaintiff

Glowberth Pty Ltd

First Defendant

Official Trustee in Bankruptcy

Second Defendant

Procedural Posture

Application to Discharge and Re Make Freezing Orders in Equity Proceedings / Interlocutory Determination

Legal Issues

  1. 1 Whether ex parte freezing orders should be discharged for material non-disclosure
  2. 2 Whether Mr Gordon has standing to maintain proceedings and seek freezing orders in light of previous bankruptcy
  3. 3 Whether quantum claimed is appropriately supported

Ratio Decidendi

The ex parte freezing orders were set aside due to Mr Gordon's material non-disclosure of his prior bankruptcy when seeking the initial orders. However, because Mr Gordon promptly sought orders afresh and demonstrated a good arguable case, a real risk of asset dissipation, and at least an arguable standing, new freezing orders were considered appropriate subject to modification of permissible legal expenses.

Court Disposition

Ex parte freezing orders discharged; new form of freezing orders to be made

Orders

  • Existing freezing orders discharged for non-disclosure
  • New freezing orders to be made in substantially the same terms with amendment allowing payment of reasonable legal expenses