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

EQUITY – equitable remedies – injunctions – whether freezing order should continue until hearing or further order – whether there is a good arguable case – personal claim to recover moneys advanced by way of loan – execution of agreement relating to that loan – agreement deliberately altered by plaintiff – prima facie, debt still due – removal and replacement of trustee – mere disagreements insufficient to justify removal – reasonable inference that those controlling trustee may not be able or willing to discharge duties with impartiality – trustee of company may not enforce its rights to recover loan – held, there is a good arguable case – whether there is risk of dissipation – defendants’ conduct in inflicting economic damage on plaintiff or trust assets – unexplained ongoing expenditure of large round sums – held, reasonable apprehension that assets of trust may not be preserved – general discretionary considerations – prejudice and inconvenience of injunction relatively slight

COSTS – where defendants made open offers – where it is presently unknown whether plaintiff has bettered offer – whether plaintiff acted unreasonably in rejecting offer

Luke Chapman appeared for the defendants, unled on second day of hearing.