In the matter of Gondon Five Pty Ltd [2016] NSWSC 1401

In the matter of Gondon Five Pty Ltd [2016] NSWSC 1401

There is a good arguable case for Tracy Cui's claim to loan repayment from CFAM ($2,407,050), and for removal of CFAM as trustee on grounds of lack of impartiality. There is reasonable apprehension that assets may not be preserved, justifying an order restraining Gondon Five and CFAM from dealing with assets beyond specified sums, and requiring preservation of one-third of amounts received by CFAM. Tracy has no arguable entitlement to half the trust assets, nor a claim against Jinsong Cui personally.

Jurisdiction
Australia
Judgment Date
13 September 2016
Procedural Posture
Interlocutory Application / Interlocutory Orders Pending Substantive Pleadings
Outcome
Orders made for continuation of freezing orders in modified form; interlocutory orders for preservation of specified sums; proceedings to continue on pleadings; costs in the proceedings.
Legal Topics
['equitable Remedies' 'injunctions' 'freezing Order' 'removal of Trustee' 'corporate Loan Repayment' 'trust Administration' 'derivative Action' 'costs']
['equity' 'corporations'] ['equitable Remedies' 'injunctions' 'freezing Order' 'removal of Trustee' 'corporate Loan Repayment' 'trust Administration' 'derivative Action' 'costs']

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Procedural Posture

Interlocutory Application / Interlocutory Orders Pending Substantive Pleadings

Legal Issues

  1. 1 ['Whether freezing order should continue until hearing or further order' 'Whether there is a good arguable case for claims advanced by Tracy Cui' 'Whether there is risk of dissipation of assets sufficient to warrant preservation orders' 'Whether CFAM should be removed as trustee and replaced' 'Whether Tracy Cui is entitled to repayment of loan from CFAM' 'Whether there is a good arguable case for derivative action by CFAM against Gondon Five']

Ratio Decidendi

There is a good arguable case for Tracy Cui's claim to loan repayment from CFAM ($2,407,050), and for removal of CFAM as trustee on grounds of lack of impartiality. There is reasonable apprehension that assets may not be preserved, justifying an order restraining Gondon Five and CFAM from dealing with assets beyond specified sums, and requiring preservation of one-third of amounts received by CFAM. Tracy has no arguable entitlement to half the trust assets, nor a claim against Jinsong Cui personally.

Court Disposition

Orders made for continuation of freezing orders in modified form; interlocutory orders for preservation of specified sums; proceedings to continue on pleadings; costs in the proceedings.

Orders

  • ["Gondon Five restrained from dealing with units or proceeds except as specified (loan repayment, expenses, tax, repayments with plaintiff's agreement)." 'CFAM restrained from dealing with amounts received from Gondon Five up to $2,704,005 plus one-third of total receipts, except for distributions to Tracy.'...