Argyle Building Services Pty Ltd v Franek

Argyle Building Services Pty Ltd brought proceedings against Franek in the Supreme Court of Victoria, seeking to maintain an ex parte freezing order that had been issued. The dispute centred around allegations of financial misconduct and the equitable principles governing the preservation of assets. The case required the court to assess whether there was a strong case warranting the continuation of the freezing order, which temporarily restrained the defendant from disposing of assets pending the resolution of the underlying litigation.

The legal issues involved determining whether the indorsement of the claim, which cited causes of action such as conspiracy by lawful means, conspiracy by unlawful means, equitable fraud, knowing assistance and receipt, and alienation of property to defraud creditors, presented a sufficient basis for maintaining the freezing order. The court had to weigh the merits of the plaintiff’s case against the potential prejudice to the defendant, balancing the need to protect the plaintiff’s interests with the defendant's right to access his or her assets.

In its judgment, the Supreme Court held that the plaintiff had not established a good arguable case for the continuation of the freezing order. The court found that the indorsement did not provide a convincing or compelling basis for the ex parte order to remain in place. Consequently, the judge discharged the freezing order. The plaintiff's application for leave to appeal the decision was subsequently refused by the court.