Firmtech Aluminium Pty Ltd v Xie (No 3)

In the matter of Firmtech Aluminium Pty Ltd v Xie, the dispute involved the second plaintiff's failure to comply with certain orders made in relation to the preservation of assets. The case was heard in the Supreme Court of Victoria. The second plaintiff, who was also a director of the first plaintiff, was found to have breached the court's orders by transferring money to a bank account that was not disclosed to the defendants. The defendants sought consequential orders against the second plaintiff, including an order for the payment of costs.

The court was required to determine whether the second plaintiff's actions amounted to a contempt of court and whether the defendants were entitled to consequential orders. The court also had to consider the appropriate costs orders to be made in relation to the interlocutory hearings. The court found that the second plaintiff had indeed acted in contempt of court by failing to comply with the preservation orders. The court also held that the defendants were entitled to consequential orders, including an order for the payment of costs.

The court ordered that the second plaintiff pay 50 per cent of the defendants' costs of and incidental to the interlocutory hearings. The balance of the costs was to be the parties' costs in the cause. The court held that this was an appropriate order given the second plaintiff's deliberate non-compliance with the preservation orders. The court also noted that the second plaintiff's actions had caused significant delay and expense to the defendants. The court considered it necessary to deter similar conduct in the future.