Paris King Investments Pty Ltd & 1 ors v Michael Norman Rayhill & 2 ors [2006] NSWSC 578

Paris King Investments Pty Ltd & 1 ors v Michael Norman Rayhill & 2 ors [2006] NSWSC 578

The court may, notwithstanding existing interlocutory and Mareva injunctions, permit husbands and wives in matrimonial proceedings to raise litigation funds on the security of company assets, provided that such variation does not irremediably prejudice the proprietary interests of third party claimants. Where separate proceedings are intertwined and proper justice requires consolidated hearings, the court may order them to be heard together. Orders were made allowing the sale or refinancing of specified properties not subject to the plaintiffs' claimed mortgage, thus balancing the need for litigation funding against the plaintiffs' proprietary claims.

Jurisdiction
Australia
Judgment Date
05 June 2006
Procedural Posture
Consolidated Trust and Matrimonial Proceedings / Interlocutory Orders and Variation of Injunctions
Outcome
Orders made permitting partial sale or refinancing of certain properties for the purpose of providing litigation expenses equally to the husband and wife; injunctions varied to that extent; hearings for consolidated proceedings set; leave reserved for applications regarding implementation.
Legal Topics
['interim Provision for Litigation Expenses' 'consolidation of Proceedings' 'variation of Interlocutory Injunctions' 'impact of Court Orders on Third Parties']
['family Law' 'equity' 'civil Procedure'] ['interim Provision for Litigation Expenses' 'consolidation of Proceedings' 'variation of Interlocutory Injunctions' 'impact of Court Orders on Third Parties']

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Procedural Posture

Consolidated Trust and Matrimonial Proceedings / Interlocutory Orders and Variation of Injunctions

Legal Issues

  1. 1 ['Whether interim provision for litigation costs should be permitted in family law proceedings' 'Whether interlocutory injunctions restraining dealings with property should be varied to permit raising funds for litigation expenses' 'Whether trust proceedings and matrimonial proceedings should be heard together' "Impact of orders upon third parties' rights"]

Ratio Decidendi

The court may, notwithstanding existing interlocutory and Mareva injunctions, permit husbands and wives in matrimonial proceedings to raise litigation funds on the security of company assets, provided that such variation does not irremediably prejudice the proprietary interests of third party claimants. Where separate proceedings are intertwined and proper justice requires consolidated hearings, the court may order them to be heard together. Orders were made allowing the sale or refinancing of specified properties not subject to the plaintiffs' claimed mortgage, thus balancing the need for litigation funding against the plaintiffs' proprietary claims.

Court Disposition

Orders made permitting partial sale or refinancing of certain properties for the purpose of providing litigation expenses equally to the husband and wife; injunctions varied to that extent; hearings for consolidated proceedings set; leave reserved for applications regarding implementation.

Orders

  • ['The defendants to permit sale/refinancing/mortgage of 565 and 567 New Canterbury Rd, Dulwich Hill; net proceeds (after mortgage and costs) to be advanced equally to the husband and wife as loans from Syfurn Pty Ltd, repayable as a first charge on property entitlements.' 'Application of $35,000 held by solicitors...