Jm Properties Pty Ltd v Strata Corporation No 13975 Inc (No 2)

Jm Properties Pty Ltd was involved in legal proceedings with the Strata Corporation No 13975 Inc, resulting in an application for an interlocutory injunction. The application was made by the Strata Corporation, which was also a defendant in the other action, along with three other defendants and the sixth defendant. They sought orders to prevent the plaintiff and its directors from disposing of assets. This application followed a trial, with judgment reserved but not delivered at the time of the application. The plaintiff had already begun disposing of assets since the commencement of the proceedings, raising questions about whether these actions were part of ordinary business operations or if they posed a risk of frustrating the satisfaction of any judgment in the other action or any costs orders against the plaintiff.

The court needed to decide whether to grant the injunctions to preserve the status quo and the property pending the determination of rights. Specifically, the court had to determine if the actions of the plaintiff in disposing of assets were ordinary or if they could potentially frustrate the satisfaction of any judgment or costs orders. The court also had to weigh the balance of inconvenience between the parties and decide if the orders should be limited to meet only the requirements of the immediate circumstances.

The court found that the orders should be made. It considered that the disposal of assets by the plaintiff since the commencement of the proceedings warranted intervention to prevent potential frustration of any future judgment or costs orders. The court concluded that the risk of asset disposals interfering with the satisfaction of any judgment or costs orders outweighed the inconvenience to the plaintiff. The orders were limited to address only the immediate circumstances to ensure they met the necessary requirements without overstepping.