Hacer Group NSW Pty Ltd v Mona Vale 3 Pty Ltd as Trustee for Mona Vale 3 Unit Trust (No 2)

In the Federal Court, Hacer Group NSW Pty Ltd sought to set aside a freezing order imposed by the Supreme Court of New South Wales against Mona Vale 3 Pty Ltd as trustee for the Mona Vale 3 Unit Trust. The order was initially made to preserve assets pending a resolution of the underlying dispute between the parties regarding the sale of a property at Mona Vale. The primary issue before the Federal Court was whether Hacer Group had disclosed all relevant information to the Supreme Court when the freezing order was granted, and if the non-disclosure was sufficient grounds to set aside the order.

The court considered the obligations of parties under the Supreme Court Act, specifically the duty to disclose all relevant information to the court when seeking a freezing order. Hacer Group argued that the non-disclosure of certain documents was inadvertent and did not prejudice Mona Vale 3. The court analysed the extent of the non-disclosure and its potential impact on the fairness of the proceedings. It was held that the non-disclosure was material and could have misled the Supreme Court in granting the order. Consequently, the Federal Court determined that the non-disclosure warranted setting aside the freezing order to ensure procedural fairness.

The court ordered that the freezing order be set aside and remitted the matter back to the Supreme Court for reconsideration in light of the full disclosure of information. The Federal Court emphasised the importance of full and accurate disclosure in applications for freezing orders to uphold the integrity of the judicial process. The final order directed that the Supreme Court conduct a fresh hearing with the complete set of disclosed documents to make an informed decision on the preservation of assets.