Luo v Zhai (No 1)

Luo commenced proceedings against Zhai and Jantom Furniture in the Federal Court, seeking, among other things, the imposition of freezing orders on the respondents and third parties. The application for freezing orders was brought by way of an ex parte application, with the respondents not being given an opportunity to be heard. The application was made several months after the proceedings had commenced. The primary issue for the Court was whether freezing orders should be made against the respondents and third parties, given the delay in bringing the application and the fact that the respondents had not been given an opportunity to be heard. The Court found that the applicant had not demonstrated any exceptional circumstances which would justify the making of the orders without notice. The Court found that the delay in bringing the application was not justified. Further, the Court found that the respondents should have been given an opportunity to be heard before the orders were made. As such, the application for freezing orders was dismissed. The Court found that the application had been brought too late and that the respondents should have been given an opportunity to be heard. Accordingly, the application for freezing orders was dismissed with costs.