Zhong v Shield Resources Pty Ltd [2021] NSWSC 617

Zhong v Shield Resources Pty Ltd [2021] NSWSC 617

On the evidence, only part of the funds should be released to the second defendant, sufficient to meet her genuine personal expenses and legal costs, not for general business funding, given the lack of sufficient or specific evidence of urgency or necessity for the majority of the requested sum. The freezing order already provides adequate security for the plaintiff’s claim.

Jurisdiction
Australia
Judgment Date
31 May 2021
Procedural Posture
Civil (common Law Interlocutory Application) / Interlocutory (motion for Release of Funds Paid Into Court Following Freezing Orders)
Outcome
Partial grant of application; release of limited funds for living and legal expenses only.
Legal Topics
['interim Preservation' 'freezing Orders' 'release of Funds' 'freezing Orders – Living Expenses and Defence Funding' 'release of Funds Paid Into Court']
['civil Procedure'] ['interim Preservation' 'freezing Orders' 'release of Funds' 'freezing Orders – Living Expenses and Defence Funding' 'release of Funds Paid Into Court']

Case Brief

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Procedural Posture

Civil (common Law Interlocutory Application) / Interlocutory (motion for Release of Funds Paid Into Court Following Freezing Orders)

Legal Issues

  1. 1 ['Whether funds paid into court pursuant to a freezing order should be released to the second defendant for living expenses and funding of defence' 'Whether a carveout from a freezing order is justified on the evidence before the court' 'Whether the urgency or necessity of the release has been established']

Ratio Decidendi

On the evidence, only part of the funds should be released to the second defendant, sufficient to meet her genuine personal expenses and legal costs, not for general business funding, given the lack of sufficient or specific evidence of urgency or necessity for the majority of the requested sum. The freezing order already provides adequate security for the plaintiff’s claim.

Court Disposition

Partial grant of application; release of limited funds for living and legal expenses only.

Orders

  • ['Of the sum of $753,200.62 paid into court on 6 January 2021 $100,000 be released to the second defendant Ying (Emma) Guan.' 'That order is stayed until Thursday, 3 June 2021 at 5pm.' 'Costs of the motion to be the costs in the cause as between the plaintiff and the second defendant.' 'Parties have liberty to apply...