Mercanti v Mercanti

In *Mercanti v Mercanti*, Kiefel J of the High Court of Australia considered an application for the extension of interlocutory injunctions that had been in force since August 2013. The application was made pending the determination of an application for special leave to appeal to the High Court and any subsequent appeal, should special leave be granted.

The central legal issue before the Court was whether injunctive relief should be granted to extend the existing injunctions. This required the Court to assess whether the applicant had demonstrated a substantial prospect that special leave to appeal would be granted, a key consideration in granting such interlocutory relief in this context.

Kiefel J reasoned that the existing injunctions should be continued to preserve the status quo pending the resolution of the special leave application and any potential appeal. The Court applied the principles governing the grant of interlocutory injunctions, particularly in circumstances where an application for special leave to appeal is on foot, focusing on the need to prevent irreparable harm and maintain the subject matter of the potential appeal.

The Court ordered that the First Respondent be restrained from exercising powers as Appointor or Guardian of the M Mercanti Family Trust, and the Second Respondent be restrained from acting as Trustee, including dealing with trust assets or incurring liabilities. These injunctions were to remain in force until the determination of the special leave application and any appeal, or further order. Liberty was granted to the respondents to apply to dissolve or vary the injunctions, and costs were reserved as costs in the cause. The Court also granted leave for the parties to file amended applications and responses.