Australia, July 30 -- New South Wales Land and Environment Court issued text of the following judgement on June 30:

1. These proceedings were commenced by a summons filed on 22 August 2024 (summons) by Richard Gazzard (Mr Gazzard), the first plaintiff, and Badajoz Property Pty Ltd, the second plaintiff. The defendants named in the summons are Wormald Malanda Pty Ltd as trustee for Anthony Hekeik Trust (first defendant), Wormald Malanda Pty Ltd as trustee for Raymond Hekeik Trust (second defendant) and Anthony Joseph Hekeik (third defendant) (Mr Hekeik).

2. By the summons the plaintiffs seek the following relief:

1) An order that the property subject to the security interests charged in favour of the first plaintiff pursuant to orders made in Supreme Court proceedings 2021/00040040 on 21 May 2024 be transferred to the plaintiff.

2) An order that the judgment debt owing to the plaintiff in the Supreme Court proceedings 2021/00040040 is reduced by the amount of the aggregate value of the property subject of the security interests charged in favour of the first plaintiff pursuant to orders made in Supreme Court proceedings 2021/00040040 on 21 May 2024 (less the first plaintiff's costs of these proceedings).

3) A declaration that the Deed establishing the Badajoz Property Unit Trust dated 4 February 2015 is hereby varied with the effect that the third defendant is to be removed as an Appointer under the Deed.

4) Costs.

3. The security interests referred to in prayer 1 relate to the judgment in proceedings 2021/40040 obtained by the first plaintiff on 22 March 2022 for $2,321,675.67 together with costs against (among others) the defendants in these proceedings: Gazzard v Hekeik [2022] NSWSC 670 (Earlier Proceedings). The orders made by Bellew J in that judgment were:

(1) Judgment for the plaintiff in the sum of $2,321,675.67.

(2) The defendants pay the costs of the plaintiff in respect of the Statement of Claim on the ordinary basis, as agreed or assessed

(3) The Amended Cross-claim be dismissed.

(4) The cross-claimants pay the costs of the first and second cross-defendants in respect of the Cross-claim, up to and including 21 March 2022 on an indemnity basis, and of 22 March 2022, on the ordinary basis.

(5) The Court notes that the plaintiff reserves his rights with respect to the enforcement of the security interest granted to him in respect of the 1 share held by Simon Charbell Hekeik in Badazjoz Property Pty Limited CAN 603 705 095 pursuant to the Deed of Loan dated 1 June 2018.

4. Before the court is an amended notice of motion filed by the plaintiffs on 27 February 2025 seeking the following orders:

1) The cross-claim filed 12 December 2024 is dismissed.

2) Alternatively the cross-claim is stayed pending (a) the payment to the first plaintiff of the sum of $88,000 and (b) the payment into court of the amount of $99,400, being security for costs in respect of the cross-claim.

3) Further in the alternative, orders for an expedited hearing of the summons and cross-claim.

5. The cross-claim was filed by Wormald Malanda Pty Ltd as trustee for AJH Family Trust, the first cross-claimant, and Mr Hekeik, the second cross-claimant. Mr Hekeik is the sole director of Wormald Malanda Pty Ltd. By the cross-claim they seek various relief in relation to the redemption of units in a unit trust called the Truman Unit Trust in 2020 held by the first cross-claimant. The first cross-defendant is Badajoz Property Pty Ltd (the second plaintiff) which was the trustee of the Truman Unit Trust at the time of the redemption, and the second cross-defendant is Mr Gazzard (the first plaintiff) who was the sole director of Badajoz Property Pty Ltd at the time of the redemption.

*Rest of the document can be viewed at: (http://caselaw.nsw.gov.au/decision/197bf290bacb3505184114e4)

Disclaimer: Curated by HT Syndication.