Dr Bill Lyon Pty Limited v Smooth as Silk Laser Cosmetic Clinic Pty Limited

In the matter of Dr Bill Lyon Pty Limited v Smooth as Silk Laser Cosmetic Clinic Pty Limited, the Federal Circuit and Family Court of Australia was called upon to determine whether an order should be made requiring the second defendant to provide an affidavit detailing their assets. The plaintiff, Dr Bill Lyon Pty Limited, sought to enforce an order against the second defendant, who had admitted liability for egregiously dishonest conduct. The plaintiff alleged that the second defendant had begun surreptitiously selling their assets, and therefore sought an order to compel the defendant to provide details of their assets to ensure the plaintiff could recover the losses suffered.

The legal issue before the court was whether an order should be made pursuant to section 13 of the Federal Magistrates Court Act 1999, requiring the second defendant to provide an affidavit detailing their assets. The court had to consider the second defendant’s admission of liability for egregiously dishonest conduct and the fact that they had begun selling their assets surreptitiously. The court had to balance the plaintiff's need to recover losses against the second defendant’s right to privacy and the potential hardship that such an order might cause.

The court found that there was a compelling case for the order to be made, given the egregious nature of the second defendant's conduct and their attempts to frustrate the plaintiff's efforts to recover losses. The court considered it appropriate to make the order but stayed the enforcement of the order until 1 August 2018 to allow for further argument on the matter. The court recognised the need to balance the plaintiff's rights with the second defendant’s rights, and therefore, the order was stayed to provide an opportunity for further submissions on the appropriate terms of the order.