Guan v Li (No 2)

The appeal concerned a challenge to a freezing order made in aid of existing and prospective proceedings in the Family Court. The judgment creditor sought to set aside a financial agreement between the husband and wife, and also to set aside a settlement deed between the wife and the husband’s trustee in bankruptcy. The appeal was brought by the judgment creditor against the wife.

The primary legal issue before the Court of Appeal was whether the judgment creditor had a good arguable case for the final relief it sought, specifically whether the proposed appeal was sufficiently arguable to justify the grant of leave to appeal. This involved considering the prospects of success in setting aside both the financial agreement and the settlement deed under sections 90K(1)(aa) and 90K(3) of the *Family Law Act 1975* (Cth).

The Court of Appeal found that the judgment creditor had not demonstrated a good arguable case for the relief it sought. The Court considered the evidence and submissions regarding the financial agreement and the settlement deed, and concluded that there were significant hurdles to the judgment creditor succeeding in its claims. Consequently, the Court determined that leave to appeal should not be granted.

The summons seeking leave to appeal was dismissed with costs.