Apostolidis v Kalenik (No 2)

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SUPREME COURT OF VICTORIA

COURT OF APPEAL

S APCI 2009 3882

IOANNIS (JOHN) APOSTOLIDIS First Appellant

DSK HOLDINGS PTY LTD

(ACN 007 416 257)

Second Appellant
AZURA PTY LTD (ACN 063 939 720) Third Appellant

YARRABEE INVESTMENTS PTY LTD

(ACN 093 518 275)

Fourth Appellant

v

ZORICA KALENIK First Respondent
and
DEPUTY COMMISSIONER OF TAXATION Second Respondent

AND BETWEEN:

ZORICA KALENIK Cross-Appellant
v
IOANNIS (JOHN) APOSTOLIDIS First Cross-Respondent
DSK HOLDINGS PTY LTD
(ACN 007 416 257)
Second Cross-Respondent
AZURA PTY LTD (ACN 063 939 720) Third Cross-Respondent

YARRABEE INVESTMENTS PTY LTD

(ACN 093 518 275)

Fourth Cross-Respondent
and
DEPUTY COMMISSIONER OF TAXATION  Fifth Cross-Respondent

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JUDGES NETTLE, ASHLEY and TATE JJA
WHERE HELD MELBOURNE
DATES OF HEARING 8 and 9 September 2011
DATE OF JUDGMENT 13 October 2011
MEDIUM NEUTRAL CITATION [2011] VSCA 307
JUDGMENT APPEALED FROM [2009] VSC 208 (Hargrave J)

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PROPERTY – De facto partners – Adjustment of property interests under Part IX of Property Law Act 1958 – Appellant grew successful business during relationship – Respondent made contributions to business and as homemaker – Appeal and cross-appeal as to quantum of adjustment sum – Whether adjustment sum just and equitable – Appeal and cross-appeal allowed – Discretion re-exercised – Giller v Procopets (2008) 24 VR 1, Kardos v Sarbutt (2006) 34 Fam L R 550, discussed.

EVIDENCE – Fresh evidence – Appellant’s tax evasion disclosed and relied upon by respondent at trial – Amended taxation assessments and freezing orders greatly affected worth of business – Assumption at trial that assets sufficient to satisfy adjustment order in favour of respondent and judgment debt in favour of Deputy Commissioner of Taxation – Whether evidence of new asset position could be adduced as fresh evidence.

COURTS AND JUDGES – Jurisdiction – Whether Court had jurisdiction to make adjustment order if apparent to court that there are insufficient assets to meet third party creditors – Ascot Investments Pty Ltd v Harper (1981) 148 CLR 337; Official Trustee in Bankruptcy v Mateo (2003) 127 FCR 217, considered.

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Appearances: Counsel Solicitors
For the Appellants/Cross-Respondents (First to Fourth) Mr S K Wilson QC and
Mr P G Little
David Tonkin & Associates
For the First Respondent/Cross-Appellant Mr P H Solomon SC and
Ms M Wilkening-Le Brun
Dimos Lawyers
For the Second Respondent/Fifth Cross-Respondent Mr C Young Australian Government Solicitor

NETTLE JA:

ASHLEY JA:
TATE JA:

Introduction

  1. This is an appeal from three judgments given in the Common Law Division.  The principal judgment determined the amount to be paid by the appellant, Ioannis Apostolidis, (‘A’) to the respondent, Zorica Kalenik (‘K’), pursuant to Part IX of the Property Law Act 1958 (‘PLA’), by way of an adjustment of interests in relation to the property of A, his companies, namely, DSK Holdings Pty Ltd (‘DSK’), Yarrabee Investments Pty Ltd (‘Yarrabee’), and Azura Pty Ltd (‘Azura’), and the property of K, after the ending of a de facto relationship of a number of years’ duration between A and K. The parties agreed…

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Details
Case
[2011] VSCA 307
Decision Date

CaseChat Overview and Summary

The appeal and cross-appeal concerned the adjustment of property interests between de facto partners under Part IX of the Property Law Act 1958. The appellant had developed a successful business during the relationship, while the respondent made contributions both to the business and as a homemaker. The central issue was the quantum of the adjustment sum, with both parties contending that the sum was not just and equitable. The court was also required to determine whether it could consider fresh evidence, specifically the appellant's tax evasion which had resulted in amended taxation assessments and freezing orders, significantly impacting the worth of the business. Additionally, the court had to consider whether it had jurisdiction to make an adjustment order if it appeared that there were insufficient assets to meet third-party creditors.

The court held that it was appropriate to consider the fresh evidence regarding the appellant's tax issues, as this materially affected the valuation of the assets and the capacity to satisfy any adjustment order. It found that the evidence of the new asset position could be adduced. In re-exercising its discretion under section 285 of the Property Law Act, the court awarded the respondent a sum broadly representing 27 per cent of the pool of property interests of the parties, valued at $1,175,000 at the present time. The court found this adjustment to be just and equitable, taking into account the contributions of both parties during the relationship.

The final orders included granting leave to the appellant to adduce fresh evidence, allowing the appeal and cross-appeal, and readjusting the interests of the parties by awarding the respondent a sum broadly representing 27 per cent of the total property interests.

Orders

Orders of the court

We grant leave to A to adduce fresh evidence. We allow the appeal and cross-appeal. In the re-exercise of the discretion under s 285 of the PLA, we adjust the interests of A and K by awarding to K a sum broadly representing 27 per cent of the pool of property interests of the parties, valued as at the present time at $1,175,000.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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