MaxRelief USA Inc v 365 Health Australia Pty Limited ACN 151 146 997 [2024] NSWSC 491

MaxRelief USA Inc v 365 Health Australia Pty Limited ACN 151 146 997 [2024] NSWSC 491

MaxRelief established a sufficient prima facie or good arguable case, at least by reference to the prospective registration and enforcement in Australia of any judgment obtained on its United States cross-claim, which had survived a summary judgment application and was proceeding to trial. Although the risk of dissipation was not straightforward, the sale of what appeared to be 365 Health's principal or a principal business asset, conversion of an ongoing business into cash and shares, uncertainty about 365 Health's remaining assets, and outstanding sale consideration created a sufficient risk to warrant an ex parte freezing order and ancillary disclosure orders. Orders against Wellnex...

Jurisdiction
Australia
Judgment Date
30 April 2024
Procedural Posture
Ex Parte Application for Freezing Order and Related Interim Asset Preservation Relief / Equity Duty List; Interim Ex Parte Orders Made on 29 April 2024 With Reasons Delivered on 30 April 2024
Outcome
Ex parte freezing order made against the first defendant; orders against the second and third defendants declined; costs reserved.
Legal Topics
['freezing Orders' 'interim Asset Preservation' 'ex Parte Applications' 'risk of Dissipation of Assets' 'prospective Enforcement of Judgment' 'registration and Enforcement of Foreign Judgments']
['civil Procedure' 'equity'] ['freezing Orders' 'interim Asset Preservation' 'ex Parte Applications' 'risk of Dissipation of Assets' 'prospective Enforcement of Judgment' 'registration and Enforcement of Foreign Judgments']

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Procedural Posture

Ex Parte Application for Freezing Order and Related Interim Asset Preservation Relief / Equity Duty List; Interim Ex Parte Orders Made on 29 April 2024 With Reasons Delivered on 30 April 2024

Legal Issues

  1. 1 ['Whether the Court should make an ex parte freezing order against 365 Health to prevent frustration or inhibition of a prospective judgment.' 'Whether MaxRelief had established a prima facie or good arguable case against 365 Health.' "Whether there was a sufficient danger that 365 Health's assets would be removed, disposed of or otherwise dealt with so that a prospective judgment would be unsatisfied." 'Whether orders should be made requiring Wellnex and BSPSPA to pay into Court monies otherwise payable to 365 Health under the Sale Agreement.']

Ratio Decidendi

MaxRelief established a sufficient prima facie or good arguable case, at least by reference to the prospective registration and enforcement in Australia of any judgment obtained on its United States cross-claim, which had survived a summary judgment application and was proceeding to trial. Although the risk of dissipation was not straightforward, the sale of what appeared to be 365 Health's principal or a principal business asset, conversion of an ongoing business into cash and shares, uncertainty about 365 Health's remaining assets, and outstanding sale consideration created a sufficient risk to warrant an ex parte freezing order and ancillary disclosure orders. Orders against Wellnex...

Court Disposition

Ex parte freezing order made against the first defendant; orders against the second and third defendants declined; costs reserved.

Orders

  • ['Service of the summons on the defendants was dispensed with before the hearing of the summons pursuant to r 25.11 of the Uniform Civil Procedure Rules 2005 (NSW).' 'Interim asset preservation orders were made against 365 Health Australia Pty Limited ACN 151 146 997 in the absence of the first defendant.' 'The...