Gardon & Zhang

In the matter of SYC 4528 of 2021, the New South Wales Trustee and Guardian, acting as the case guardian for Mr Gardon, sought and obtained ex parte orders against Ms Zhang. The dispute arose in the context of a long-term de facto relationship between Mr Gardon and Ms Zhang. Ms Zhang had previously held Mr Gardon's power of attorney, but had been removed from this role by the New South Wales Civil and Administrative Tribunal, leading to the appointment of the New South Wales Trustee and Guardian as Mr Gardon's case guardian.

The primary legal issue before Harper J was whether to grant injunctions to preserve the assets of both Mr Gardon and Ms Zhang. Specifically, the court was required to determine if it was appropriate to restrain Ms Zhang from disposing of or encumbering the sale proceeds of a property located at C Street, Suburb B, and from removing or transferring any of her own property or Mr Gardon's property from New South Wales or the Commonwealth of Australia.

Harper J reasoned that the circumstances warranted the imposition of interim preservation orders to protect the applicant's interests pending further determination of the proceedings. The court applied principles relating to the preservation of assets in family law matters, particularly where one party's capacity is diminished and their interests are managed by a trustee. The court acknowledged that Ms Zhang would be permitted to use her own property for ordinary living expenses and legal fees.

The court ordered that Ms Zhang be restrained from removing from New South Wales or Australia, or otherwise encumbering or disposing of, the net sale proceeds of the C Street, Suburb B property, after accounting for a specified sum paid towards Mr Gardon's accommodation. Furthermore, Ms Zhang was restrained from removing from New South Wales or Australia, or transferring, assigning, or alienating any of her own property or Mr Gardon's property. The New South Wales Trustee and Guardian was appointed as Case Guardian for Mr Gardon, and leave was granted to issue subpoenas. The proceedings were adjourned for further management.