Fajloun v Khoury

Case

[2016] NSWCA 101

10 May 2016


Details
AGLC Case Decision Date
Fajloun v Khoury [2016] NSWCA 101 [2016] NSWCA 101 10 May 2016

CaseChat Overview and Summary

The appeal concerned allegations of contempt of court brought by the respondent against the appellant. The dispute arose from an earlier court order directing the parties to take reasonable steps to ensure all cash takings from their businesses were deposited into designated bank accounts. This was to facilitate payments to creditors and employees, with the proviso that cash payments could be made if required. The appellant was accused of breaching this order.

The central legal issues before the Court of Appeal were whether the appellant was guilty of contempt of court, whether the appellant could be considered an employee for the purposes of the order, and what constituted a "required" cash payment under the terms of the court's directive.

The Court of Appeal considered the evidence presented and the terms of the original order. It was held that the appellant had failed to take reasonable steps to comply with the order regarding the deposit of cash takings. Furthermore, the Court determined that the appellant's role and actions meant they were not acting solely as an employee in a manner that would exempt them from the primary obligation to deposit takings. The interpretation of "required" was also addressed, with the Court finding that the circumstances did not justify the appellant's actions in circumventing the deposit requirement.

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.
Details

Areas of Law

  • Civil Procedure

  • Contract Law

Legal Concepts

  • Breach

  • Remedies

  • Costs

Actions
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Cases Cited

15

Statutory Material Cited

2

Re Mycorp Pty Ltd [2014] NSWSC 899
Re Mycorp Pty Ltd [2014] NSWSC 1180
ASIC v Sigalla (No 3) [2010] NSWSC 1076