Helena Hu v PS Securities Pty Ltd as trustee of the Joseph Family Trust

Helena Hu filed an application for a freezing order against PS Securities Pty Ltd as trustee of the Joseph Family Trust, seeking to prevent the dissipation of trust assets. The dispute revolves around the potential for the plaintiff to claim a right of subrogation to the former trustee's right of indemnity out of trust assets to satisfy a judgment debt. The court was tasked with determining whether Hu had standing to pursue this claim and whether there was a reasonable apprehension of risk or dissipation of the trust assets. The application was heard in the Supreme Court of Queensland.

The legal issues before the court encompassed the plaintiff's standing to claim a right of subrogation and whether there was a reasonable apprehension of risk of dissipation of the trust assets. The court needed to assess whether the plaintiff had a sufficiently arguable case regarding the existence of the right of subrogation and whether there was a reasonable apprehension of the risk of dissipation of assets. The court also considered the implications of the plaintiff's lodgement of a proof of debt on her ability to pursue this claim.

The court found that Hu had presented a sufficiently arguable case regarding the existence of the right of subrogation. The plaintiff had demonstrated a reasonable apprehension of risk of dissipation of trust assets, which warranted the grant of a freezing order. The court concluded that the plaintiff had standing to pursue the claim, and the potential risk of asset dissipation justified the issuance of the freezing order. The court's decision was based on the balance of convenience and the likelihood of success in the plaintiff's claim for subrogation.

The court granted the application for a freezing order, directing PS Securities Pty Ltd to preserve the trust assets pending the resolution of the underlying dispute. The order was intended to safeguard the trust assets against dissipation and ensure that they remain available to satisfy any judgment debt that might be owed to the plaintiff. The court emphasised the importance of maintaining the status quo until the substantive proceedings could be determined.