Bowe and Bateman

In *Bowe & Bateman* [2012] FamCA 392, the Family Court of Australia considered an application by the applicant wife, Ms Bowe, for orders that the respondent husband, Mr Bateman, withdraw caveats he had lodged over three properties. Ms Bowe sought to use these properties as security for a construction loan to facilitate the development of one of the properties. Mr Bateman resisted the application, raising concerns about Ms Bowe's financial disclosures and the potential diminution of the property pool available for division.

The central legal issues before the Court were whether orders should be made requiring Mr Bateman to withdraw the caveats, and what protective measures were necessary to address Mr Bateman's concerns regarding the use of loan funds and the development of the property. The Court was required to balance Ms Bowe's need to secure finance to avoid breaching a significant building contract against Mr Bateman's legitimate concerns about the impact on the property pool and the adequacy of financial disclosure.

Justice Murphy found that there were circumstances of urgency due to Ms Bowe's impending payment obligations under the building contract. The Court noted that there was no evidence before it suggesting Mr Bateman had a caveatable interest in the properties. Considering the balance of convenience, and in light of the protective orders to be made, the Court determined that a mandatory injunction requiring the withdrawal of the caveats was warranted. These protective orders included restraining Ms Bowe from selling or encumbering the properties except for the construction loan, restraining her from using loan moneys for purposes other than the construction contracts, and requiring her to provide detailed financial documentation and invoices to Mr Bateman's solicitors.

The Court ordered Mr Bateman to withdraw the caveats, and Ms Bowe to be restrained from selling or encumbering the properties except for the purposes of the construction loan. Ms Bowe was also restrained from using loan moneys save for the performance of her obligations under the construction contracts. Further orders required Ms Bowe to provide loan application documents, financial institution correspondence, security documents, and all invoices and quotations from builders and subcontractors to Mr Bateman's solicitors within seven days of receipt. Leave was granted to Mr Bateman to issue a subpoena to the National Australia Bank, with leave for both parties to inspect and copy documents produced. The Court also made directions for the filing of written submissions and the potential for a further hearing, with a cut-off date of 2 July 2012 for an application to reopen the matter. Costs were reserved.