Consolidated Constructions Pty Ltd v Bellenville Pty Ltd

Consolidated Constructions Pty Ltd sought an asset preservation order against Bellenville Pty Ltd in relation to $5 million of the proceeds from the sale of a property in Perth. The applicant, a building company, had entered into a contract with Bellenville, a company with a paid-up capital of $2, for the refurbishment and expansion of the David Jones store site. The applicant claimed damages from Bellenville and others in separate proceedings, alleging misleading or deceptive conduct contrary to s 52 of the Trade Practices Act 1974. The applicant estimated its loss to be $5.15 million due to the alleged misleading information about the presence of asbestos in the building. The court had to decide whether Bellenville should be restrained from disposing of $5 million of the proceeds from the sale of the property. The court considered the significant change in the commercial relationship between the parties due to the sale of the building before the completion of the building works and the Contract. The court accepted the applicant's submissions and concluded that the Mareva order should be extended until further order, with the amount involved reduced to $3 million. The court reasoned that it would be appropriate for the figure to be reduced to $3 million, considering all the circumstances. The court made orders restraining Bellenville from transferring, alienating, or disposing of $3 million of the proceeds from the sale of the property, reserving the costs of the application, and granting liberty to any party to apply upon seven days' written notice to the other parties.