Jeramback Holdings Pty Ltd v Austral-Asean Pty Ltd

Jeramback Holdings Pty Ltd and others brought an application against Austral-Asean Pty Ltd and others for the removal of various caveats on certain properties in Darwin. The plaintiffs lodged the caveats based on claims of a constructive trust in the substantive proceedings, alleging that the defendants breached fiduciary duties and acted fraudulently. The defendants sought to remove the caveats to sell the properties and use the proceeds for their ongoing litigation. The court had to determine whether the balance of convenience lay in favour of removing the caveats or retaining them. The plaintiffs argued that removing the caveats would deprive them of their claimed proprietary interest in the properties and the benefit of success in the proceedings. The court considered the extensive delay in the defendants seeking relief, the close proximity of the trial, and the preservation of the status quo. The court found in favour of the plaintiffs, dismissing the application to remove the caveats. The balance of convenience lay in favour of retaining the caveats to preserve the claimed proprietary interests of the plaintiffs in the properties.