Roupell v Zhang [2020] NSWSC 1362

Roupell v Zhang [2020] NSWSC 1362

Although the plaintiffs had a prima facie case that their contract was with Mr Zhang, they did not establish the necessary risk of dissipation of assets. Evidence that Mr Zhang might be unable to service borrowings or might be at risk of insolvency did not, without more, show a risk that he would unscrupulously make himself judgment proof. The pleaded denial concerning licensing did not establish lack of probity. The freezing orders therefore could not be made.

Jurisdiction
Australia
Judgment Date
06 October 2020
Procedural Posture
Civil Proceedings Seeking Freezing Orders / Plaintiffs' Motion Under Uniform Civil Procedure Rules 25.11 and 25.12
Outcome
The plaintiffs' motion was dismissed.
Legal Topics
['freezing Orders' 'risk of Dissipation of Assets' 'prima Facie Case' 'costs']
['civil Procedure'] ['freezing Orders' 'risk of Dissipation of Assets' 'prima Facie Case' 'costs']

Case Brief

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Procedural Posture

Civil Proceedings Seeking Freezing Orders / Plaintiffs' Motion Under Uniform Civil Procedure Rules 25.11 and 25.12

Legal Issues

  1. 1 ['Whether the plaintiffs had a prima facie case sufficient to justify preservation of the status quo pending trial.' 'Whether the plaintiffs established a risk that Mr Zhang would dissipate assets or make himself judgment proof.' 'Whether costs should follow the event.']

Ratio Decidendi

Although the plaintiffs had a prima facie case that their contract was with Mr Zhang, they did not establish the necessary risk of dissipation of assets. Evidence that Mr Zhang might be unable to service borrowings or might be at risk of insolvency did not, without more, show a risk that he would unscrupulously make himself judgment proof. The pleaded denial concerning licensing did not establish lack of probity. The freezing orders therefore could not be made.

Court Disposition

The plaintiffs' motion was dismissed.

Orders

  • ["The plaintiff's motion is dismissed and they must bear Mr Zhang's costs, as agreed or assessed."]