Australia, June 12 -- New South Wales Land and Environment Court issued text of the following judgement on May 13:

1. Before the Court is a notice of motion filed by the defendants on 14 March 2025 claiming an order that the proceeds of sale of a property at 81 High Street, Cabramatta West, that were paid into Court pursuant to an order of McNaughton J made on 20 November 2024, be released to the defendants forthwith. McNaughton J's order was made in exercise of the Court's power to freeze assets to facilitate the process of enforcement which will arise if the plaintiffs succeed in recovering judgment for a sum of money.

2. The Cabramatta West property was registered in the names of the first and second defendants as tenants in common, as to a 5% interest for the first defendant and as to 95% for the second defendant. The second defendant is the first defendant's son.

3. McNaughton J's ex parte order of 20 November 2024 was continued by Chen J on the first return of the proceedings on 25 November 2024. On that day the defendants completed the sale of the property. The net proceeds after discharge of a mortgage and payment of expenses of sale were $714,976.79. The defendants caused that sum to be paid into Court.

4. Pursuant to a consent order made on 27 March 2025, $167,710 was paid out to the defendants for legal and living expenses of themselves, and for living expenses of other family members who are part of their household. The balance remaining in Court is $547,266.79.

The principal proceedings

Original statement of claim 20 December 2024

5. The first pleading of the plaintiff's case was a statement of claim filed on 20 December 2024. Therein the plaintiffs pleaded against the first defendant the following causes of action:

1) Debt in the amount of approximately $375,800 being the balance owing, including interest, on a series of 17 advances made between 13 May 2020 and 8 January 2024. Some of the advances are alleged to have been made by the first plaintiff and some by the second plaintiff. There are alternative cases pleaded as to which plaintiff is the correct creditor in respect of various amounts.

2) Breach of contract (with alternatives of deceit and misleading and deceptive conduct contrary to the Australian Consumer Law and the Australian Securities and Investments Commission Act 2001 (Cth)), sounding in damages of approximately $500,000.

6. The second cause of action and its alternatives are based on an alleged agreement made in January 2021 between the first defendant, on the one hand, and the plaintiffs, on other hand, pursuant to which the plaintiffs participated in games called Tong Tin organised by the first defendant. Each game required the plaintiffs and other participants to pay an initial deposit to the first defendant and thereafter to make weekly bids that, depending upon the bids made by other players, would either result in a payment to the plaintiffs or a requirement to make a further contribution. The plaintiffs allege that on about 21 January 2024, the first defendant failed to pay out to them amounts that were due under the terms of the games. The plaintiffs' participation in the games ceased from that date. That gives rise to their claim in damages for breach of contract.

7. The plaintiffs alternatively allege that statements made by the first defendant during the course of the games were false and that the defendants are liable in damages for the tort of deceit and/or for statutory misleading conduct.

8. The statement of claim filed on 20 December 2024 did not plead any cause of action against the second defendant. On the face of that pleading it appears that he was joined solely in aid of enforcement of a judgment for a monetary amount against the first defendant, if such a judgment should be recovered. It is alleged in the statement of claim that the second defendant's 95% interest in the Cabramatta West property, the acquisition of which was settled in December 2020, resulted from an alienation by the first defendant with intent to defraud her creditors, contrary to s 37A of the Conveyancing Act 1919 (NSW). That allegation has subsequently been abandoned.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/196d11aed82851ea6eb903b2)

Disclaimer: Curated by HT Syndication.