Eddy Lau Constructions Pty. Ltd. v Transdevelopment Enterprises Pty. Ltd

Eddy Lau Constructions Pty. Ltd. initiated proceedings against Transdevelopment Enterprises Pty. Ltd. seeking a Mareva injunction to restrain the latter from disposing of its assets. The case was heard in the Supreme Court of New South Wales. The applicants argued that they had a strong likelihood of success at trial and that the defendant held assets within the jurisdiction which could satisfy any potential judgment. The defendants contended that the applicants had failed to demonstrate the necessary threshold for such an injunction.

The court was required to determine whether the applicants had established the requisite criteria for the grant of a Mareva injunction. The key issues included whether there was a strong likelihood of success at trial, whether the defendants had assets within the jurisdiction, and whether the applicants had acted with diligence. The court also had to consider whether the injunction was necessary to preserve the status quo pending the trial.

The court found that while the applicants had demonstrated a serious question to be tried, they had not shown a strong likelihood of success at trial. Consequently, the court declined to grant a full Mareva injunction. However, the court was satisfied that the applicants had demonstrated sufficient grounds to justify the granting of a limited injunction. This injunction restrained the defendants from disposing of certain specified assets within the jurisdiction. The court emphasised that this limited injunction was narrowly tailored to address the specific concerns raised by the applicants and was not intended to be a comprehensive restraint on the defendants' assets.

The court ordered a limited injunction against the defendants, restraining them from disposing of specified assets within the jurisdiction. This injunction was intended to preserve the status quo until the substantive proceedings could be determined. The court reserved other issues for further argument at a subsequent hearing.