Lee v Mavaddat

Case [2005] WASC 68 (S)


LEE -v- MAVADDAT [2005] WASC 68 (S)


Link to Appeal :

SUPREME COURT OF WESTERN AUSTRALIACitation No:[2005] WASC 68 (S)
Case No:CIV:1862/20018-12, 15-19, 22-26, 29 NOVEMBER 2004, 17 JANUARY & 22 JUNE 2005
Coram:ROBERTS-SMITH J29/04/05
7/07/05
14Judgment Part:1 of 1
Result: Plaintiff's application granted
B
PDF Version
Parties:KYUNG HEE LEE
MICHAEL MOOJAN MAVADDAT

Catchwords:

Practice
Orders
Defendant found liable to repay partnership funds
Whether judgment should be held pending distribution of dividend by the liquidator
Practice
Orders
Use of partnership funds to pay deposit on purchase of property by fiduciary
Partnership funds only part of purchase price
Whether there should be declaration fiduciary holds whole of property on constructive trust
Practice
Costs
Conduct of defendant
Whether circumstances justifying special costs order
Whether conduct went to way litigation conducted

Legislation:

Nil

Case References:

Australian Competition and Consumer Commission v Amcor Printing Papers Group Ltd [2000] FCA 163
Biltoft Holdings Pty Ltd v Casselan Pty Ltd (1991) 4 WAR 14
Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225
Cretazzo v Lombardi (1975) 13 SASR 4
Degmam Pty Ltd (In liq) v Wright (No 2) [1983] 2 NSWLR 354
Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Ltd & Ors (1988) 81 ALR 397
Harrison v Schipp [2001] NSWCA 13
Henderson v Amadio Pty Ltd, unreported; FCA; 22 March 1996
Hypec Electronics Pty Ltd (In liq) v Mead & Ors (2004) 61 NSWLR 169
Lee v Mavaddat [2005] WASC 68
SDS Corporation Ltd v Pasdonnay Ltd & Anor [2004] WASC 26 (S2)

Nil

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CIVIL
CITATION : LEE -v- MAVADDAT [2005] WASC 68 (S) CORAM : ROBERTS-SMITH J HEARD : 8-12, 15-19, 22-26, 29 NOVEMBER 2004, 17 JANUARY & 22 JUNE 2005 DELIVERED : 29 APRIL 2005 SUPPLEMENTARY
DECISION : 7 JULY 2005 FILE NO/S : CIV 1862 of 2001
    CIV 1824 of 2001
    Consolidated by Order dated 24 October 2001
BETWEEN : KYUNG HEE LEE
    Plaintiff

    AND

    MICHAEL MOOJAN MAVADDAT
    Defendant



Catchwords:

Practice - Orders - Defendant found liable to repay partnership funds - Whether judgment should be held pending distribution of dividend by the liquidator



Practice - Orders - Use of partnership funds to pay deposit on purchase of property by fiduciary - Partnership funds only part of purchase price - Whether there should be declaration fiduciary holds whole of property on constructive trust



(Page 2)

Practice - Costs - Conduct of defendant - Whether circumstances justifying special costs order - Whether conduct went to way litigation conducted


Legislation:

Nil




Result:

Plaintiff's application granted




Category: B


Representation:


Counsel:


    Plaintiff : Mr S M Davies
    Defendant : Mr N W McKerracher QC


Solicitors:

    Plaintiff : Stables Scott
    Defendant : Freehills



Case(s) referred to in judgment(s):

Australian Competition and Consumer Commission v Amcor Printing Papers Group Ltd [2000] FCA 163
Biltoft Holdings Pty Ltd v Casselan Pty…

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Lee v Mavaddat [2005] WASC 68 (S)
Case
[2005] WASC 68 (S)
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CaseChat Overview and Summary

The matter of Lee v Mavaddat involved a dispute between the plaintiff, Lee, and the defendant, Mavaddat, over the misuse of partnership funds. The court had to determine whether the defendant, who had been found liable to repay partnership funds, should have his judgment held pending the distribution of a dividend by the liquidator. Additionally, the court needed to consider whether there should be a declaration that the defendant held the whole of a property on a constructive trust, as he had used partnership funds to pay a deposit on the purchase of the property. The plaintiff argued that the defendant's conduct warranted a special costs order due to the way the litigation was conducted.

The court examined the circumstances under which the defendant used the partnership funds to pay a deposit on the property. It found that the partnership funds were only part of the total purchase price, and therefore, the defendant did not hold the entire property on a constructive trust. However, the court acknowledged that the defendant had misused partnership funds and ordered him to repay the misused funds. Regarding the costs, the court considered the defendant's conduct during the litigation and determined that a special costs order was justified.

The court granted the plaintiff's application, ordering the defendant to repay the misused partnership funds. Additionally, the court held the defendant's judgment pending the distribution of a dividend by the liquidator. Furthermore, the court ordered that the defendant's conduct during the litigation warranted a special costs order against him. The orders reflect the court's determination of the legal issues and the appropriate remedies in this case.

Orders

Orders of the court

Plaintiff's application granted

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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