Liatos and Liatos

In *Liatos and Liatos*, O'Ryan J considered applications concerning the distribution of proceeds from the sale of a property and related interlocutory orders. The dispute involved the Husband, acting as the sole director of Liatos Group Pty Limited (trustee for the A Property Trust), and the Wife, concerning the priority of payments from the sale of the A property in Brisbane. The court was required to determine the appropriate order for the disbursement of these sale proceeds and to make orders regarding the preservation of funds and the continuation of existing restraints.

The primary legal issue before the court was the establishment of a clear and enforceable priority for the distribution of the property sale proceeds. This involved determining the order in which various claims, including agent commissions, conveyancing costs, mortgage discharge, statutory charges, and potential GST, should be satisfied before any remaining balance was secured. Additionally, the court had to consider whether to continue restraining orders against the parties, particularly concerning the funds held in a controlled monies account, and to address the discharge of other existing orders, such as those preventing the Husband from leaving the Commonwealth.

O'Ryan J ordered that the Husband, in his capacity as trustee, must ensure the proceeds of sale were paid in a specific priority: first, agent commissions; second, conveyancing costs and disbursements; third, the amount to discharge the Suncorp Ltd mortgage; fourth, statutory charges including any GST; and finally, the balance to a controlled monies account in the joint names of the solicitors for both parties. Pending final property orders, both parties, including the Husband as trustee, were restrained from dealing with the funds in this controlled monies account. The court also ordered the discharge of previous restraints on the Husband leaving Australia upon compliance with the distribution order, and required the Wife to file an undertaking as to damages. Further orders were made staying a previous order and requiring the Wife to file an application for a stay of execution, with the matter listed for mention and case management.