Kendling and Kendling (No. 2)

This matter concerned an application for disqualification filed by the Husband against the Wife. The proceedings before O'Ryan J involved complex financial disputes between the parties, with the Wife seeking relief against the Husband and other respondents. A significant issue was the determination of the parties' financial circumstances and the extent and value of the Husband's assets.

The court was required to determine whether there was a serious case to be tried regarding the financial disputes, particularly concerning the Husband's assets and disclosure. The court also had to consider preliminary issues of jurisdiction concerning the Wife's claims against certain respondents and the potential need to provide notice to the Australian Securities and Investments Commission. Furthermore, the court needed to assess whether the Husband had made full and frank disclosure of his financial circumstances and whether steps had been taken to obstruct the Wife's investigations.

O'Ryan J noted that senior counsel for the Husband had conceded that there was a serious case to be tried, acknowledging the complexity of the financial issues. The court accepted that it was not possible at an interim stage to make definitive findings regarding the full extent and value of the parties' net assets, nor to resolve the Wife's contentions about the Husband's financial circumstances or her claims against the other respondents. However, the court found prima facie evidence supporting the Wife's contentions and observed difficulties the Wife had encountered in obtaining information. The court also highlighted several transactions involving companies controlled by the Husband that warranted investigation, including the acquisition and subsequent sale of properties by B Ltd, the transfer of land to T Pty Ltd for a significantly lower price, and the sale of a property by B Ltd to Jeremy Kendling for a price far below its subsequent sale value. The court also considered the sale of a property in the Netherlands to A Pty Ltd, noting discrepancies and the need for corroborating primary records.

The application for disqualification filed on behalf of the Husband was dismissed.