Miller v LMG Building Pty Ltd

Miller commenced proceedings against LMG Building Pty Ltd for the recovery of monies owed. The builder engaged in 'phoenixing', transferring assets to a third party for no consideration, and did not appear in the proceedings. The third party, which was operated by the director of the builder, was the subject of a freezing order. The primary issue for the court was whether the freezing order should be continued against the third party, considering the risk of further asset disposal to frustrate the judgment. The court considered the conduct of the director and the builder, and the risk of dissipation of assets. The court found that the director and builder had engaged in conduct that demonstrated a real risk of further asset disposal to frustrate the judgment. The court held that the freezing order should be continued against the third party to prevent the dissipation of assets and to ensure the judgment creditor's rights were protected. The court found in favour of the judgment creditor and ordered that the freezing order against the third party be continued.