JD and S Project Pty Limited v Katcorp Constructions Pty Limited

The plaintiff, JD and S Project Pty Limited, sought a freezing order over the assets of the defendant, Katcorp Constructions Pty Limited, in the Federal Court of Australia. The plaintiff alleged that the defendant had failed to complete work on a project and sought to prevent the defendant from disposing of any assets that could be used to satisfy any judgment debt. The legal issue before the court was whether the plaintiff had established a good arguable case that it would be unable to enforce any judgment against the defendant if a freezing order was not granted. The court considered whether the plaintiff had discharged the onus of proving that there was a danger that the judgment it seeks to record may be frustrated by actions of the defendant in the meantime disposing of assets. The court also considered whether the onus should shift to the defendant to demonstrate that there was no real risk of dissipation of assets. The court held that the plaintiff had made out a prima facie case that it would be unable to enforce any judgment against the defendant if a freezing order was not granted. The court found that the plaintiff had discharged its onus of establishing a danger that the judgment it seeks to record may be frustrated by actions of the defendant in the meantime disposing of assets. The court held that the onus shifted to the defendant to demonstrate that there was no real risk of dissipation of assets. The court found that the defendant had failed to discharge this onus. The court made the order sought by the plaintiff, freezing the defendant's assets, and reserved the costs of the motion. The court directed entry of the order forthwith.