Luo v Zhai (No 3)

[2015] FCA 5

FEDERAL COURT OF AUSTRALIA

Luo v Zhai (No 3) [2015] FCA 5

Citation:	Luo v Zhai (No 3) [2015] FCA 5
Parties:	XIANGNAN LUO v SUTAO ZHAI and JANTOM FURNITURE PTY LTD ACN 092 171 634
File number:	NSD 1035 of 2013
Judge:	PERRAM J
Date of judgment:	9 January 2015
Catchwords:	PRACTICE AND PROCEDURE – application for leave to applicant to commence proceedings in the United Kingdom seeking freezing orders against third parties
Cases cited:	Dadourian Group International Inc v Simms [2006] 1 WLR 2499 applied Luo v Zhai (No 1) [2014] FCA 1296 cited Luo v Zhai (No 2) [2014] FCA 1367 cited
Date of hearing:	9 January 2015
Place:	Sydney
Division:	GENERAL DIVISION
Category:	Catchwords
Number of paragraphs:	16
Counsel for the Applicant:	Mr S Wilmoth
Solicitor for the Applicant:	Australian International Lawyers
Counsel for the Respondents:	Mr D D’Souza
Solicitor for the Respondents:	Jurisbridge Legal

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION	NSD 1035 of 2013

BETWEEN:

XIANGNAN LUO
Applicant

AND:

SUTAO ZHAI
First Respondent

JANTOM FURNITURE PTY LTD ACN 092 171 634
Second Respondent

JUDGE:	PERRAM J
DATE OF ORDER:	9 JANUARY 2015
WHERE MADE:	SYDNEY

THE COURT ORDERS THAT:

1.Leave be granted to the applicant to seek in the United Kingdom a freezing order against the first respondent, Mr Dongsheng Li and Ms Susie Li to the extent that leave is necessary.

2.Costs be reserved.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION	NSD 1035 of 2013

BETWEEN:

XIANGNAN LUO
Applicant

AND:

SUTAO ZHAI
First Respondent

JANTOM FURNITURE PTY LTD ACN 092 171 634
Second Respondent

JUDGE:	PERRAM J
DATE:	9 JANUARY 2015
PLACE:	SYDNEY

REASONS FOR JUDGMENT

1. This matter arises from applications for freezing orders by the applicant, Mr Luo, against the first respondent, Ms Zhai, which were pursued by him after the trial was completed and judgment was reserved.  Mr Luo took this course because he had become concerned that Ms Zhai was attempting to divest herself of assets so as to render nugatory any judgment he might obtain. On 27 November 2014 I granted Mr Luo a freezing order against Ms Zhai and her company, Jantom Furniture Pty Ltd, restraining both from removing assets from Australia: Luo v Zhai (No 1) [2014] FCA 1296. At that time, the evidence satisfied me that Ms Zhai was attempting to divest herself of assets. Part of the evidence consisted of a transfer of $500,000 from the Zhai Family Trust to an account with Barclays Bank in Bristol in the United Kingdom held in the name of Mr Dongsheng Li. This transfer had occurred on 11 October 2014, some months before the freezing orders were sought. Consequently, it was not caught by the freezing order made by me on 27 November 2014.

2. I was nevertheless of the view which I recorded at [20]-[21] in Luo v…