Pratley & Pratley (No 8)

Case [2023] FedCFamC1F 946

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA

(DIVISION 1)

Pratley & Pratley (No 8) [2023] FedCFamC1F 946

File number(s): CAC 298 of 2019
Judgment of: GILL J
Date of judgment: 9 November 2023
Catchwords: FAMILY LAW – INTERIM PROCEEDINGS – Interim property settlement – Within final anticipated adjustment – adequate reason to make interim order – Mode of payment imperils business – Application refused – Restraint upon business account – Restraint proposed with carve outs to allow the operation of the business – Previous unconstrained drawings by husband – Continuing such imperils business in same manner as refused interim property settlement – Sole use – Injunction in support of sole use – Disclosure
Legislation:

Family Law Act 1975 (Cth) – ss 75(2), 79 and 114

Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)
Cases cited:

Bevan v Bevan (2013) 49 FamLR 387

Gabel & Yardley (2008) FLC 93-386

Stanford v Stanford (2012) 247 CLR 108

Strahan & Strahan (2009) 42 FLR 203

Wenz v Archer (2008) 40 FamLR 212
Division: Division 1 First Instance
Number of paragraphs: 49
Date of hearing: 30-31 October 2023
Place: Canberra
Counsel for the Applicant: Mr Williams, KC, with Mr Matthews, counsel
Solicitor for the Applicant: Hijazi Curran Cameron
Counsel for the Respondent: Mr Puckey, KC
Solicitor for the Respondent: Farrar Gesini Dunn
Solicitor for the Interveners: Excused from attendance

ORDERS

CAC 298 of 2019

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
BETWEEN:

MS PRATLEY

Applicant
AND:

MR PRATLEY

Respondent

MR EE

First Intervener

MR H

Second Intervener

MR J

Third Intervener

MR O

Fourth Intervener

ORDER MADE BY:

GILL J

DATE OF ORDER:

9 NOVEMBER 2023

THE COURT ORDERS THAT:

1.The wife’s application that the respondent husband cause to be paid to her the sum of $250,000 from the working account for HH Pty Ltd, being AA Bank Account …59 (the HH Pty Ltd working account) is dismissed.

2.The respondent is restrained by injunction from withdrawing any amount from the AA Bank Account …59 (being the general account for the Suburb CC Business), except to pay the following:

(a)wages and commissions for the Suburb CC Business;

(b)BAS equal to the assessed amounts from time to time, to be paid as they fall due and not prior, for the Suburb CC Business;

(c)insurance for the Suburb CC Business, for current premiums only; to be paid as they fall due and not prior;

(d)advertising for the Suburb CC Business;

(e)taxation liabilities for the Suburb CC Business as and when they are due and payable;

(f)Income Activity Statements payments for the Suburb CC Business, to be paid as they fall due and not prior;

(g)lease repayments for the Suburb CC Business equipment currently leased;

(h)franchise fees for the Suburb CC Business;

(i)payments to ongoing suppliers for the operation of the Suburb CC Business, including but not limited to phone bills, stationery, and internet;

(j)principal and interest loan repayments, to be paid as they fall due and not prior, for the loans…

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Details
AGLC
Pratley & Pratley (No 8) [2023] FedCFamC1F 946
Case
[2023] FedCFamC1F 946
Decision Date

CaseChat Overview and Summary

The matter of Pratley & Pratley (No 8) involved the applicant, Ms Pratley, and the respondent, Mr Pratley. The applicants sought an interim property settlement and injunctive relief against the respondent and several interveners. The court had to determine whether the applicant was entitled to an interim property settlement of $250,000 from the business account, as well as injunctive relief to prevent the respondent from withdrawing funds from a business account, except for specific payments. The court also had to decide whether the interveners were entitled to disclosure of certain documents related to the case. The court considered the financial situation of the parties, the nature of the business, and the potential impact of the proposed orders on the business. The court found that there was no adequate reason to make an interim property settlement, as the proposed payment would imperil the business. The court also found that the proposed injunctive relief was not appropriate, as it would allow the respondent to continue making unconstrained drawings from the business account, which would imperil the business in the same manner as the refused interim property settlement. However, the court did grant the applicant sole use and occupation of a specific property and restrained the respondent from attending upon that property without the applicant's express written consent. The court also ordered the respondent to provide the applicant with information about the funds held in a specific business trust account. The court denied the interveners' request for disclosure of certain documents without further direction from the court. The court's decision was based on the specific circumstances of the case and the need to balance the rights of the parties with the need to protect the business. The court's orders were designed to provide relief to the applicant while also ensuring that the business was not imperiled.

Orders

Orders of the court

CAC 298 of 2019

FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)

BETWEEN:

MS PRATLEY

Applicant

AND:

MR PRATLEY

Respondent

MR EE

First Intervener

MR H

Second Intervener

MR J

Third Intervener

MR O

Fourth Intervener

ORDER MADE BY:

GILL J

DATE OF ORDER:

9 NOVEMBER 2023

THE COURT ORDERS THAT:

1. The wife’s application that the respondent husband cause to be paid to her the sum of $250,000 from the working account for HH Pty Ltd, being AA Bank Account …59 (the HH Pty Ltd working account) is dismissed.

2. The respondent is restrained by injunction from withdrawing any amount from the AA Bank Account …59 (being the general account for the Suburb CC Business), except to pay the following:

(a) wages and commissions for the Suburb CC Business;

(b) BAS equal to the assessed amounts from time to time, to be paid as they fall due and not prior, for the Suburb CC Business;

(c) insurance for the Suburb CC Business, for current premiums only; to be paid as they fall due and not prior;

(d) advertising for the Suburb CC Business;

(e) taxation liabilities for the Suburb CC Business as and when they are due and payable;

(f) Income Activity Statements payments for the Suburb CC Business, to be paid as they fall due and not prior;

(g) lease repayments for the Suburb CC Business equipment currently leased;

(h) franchise fees for the Suburb CC Business;

(i) payments to ongoing suppliers for the operation of the Suburb CC Business, including but not limited to phone bills, stationery, and internet;

(j) principal and interest loan repayments, to be paid as they fall due and not prior, for the loans secured by mortgage against the following properties:

(i) 5 Q Street, Suburb S; and

(ii) Z Street, Suburb E;

(k) any outstanding home loan repayments due to ANZ Bank, in addition to the payments due in the preceding sub-clause;

(l) any outstanding rates and land tax for the properties at 5 Q Street, Suburb S and Z Street, Suburb E;

(m) the respondent’s rental expenses for the lease at his current residence;

(n) any outstanding school fees payable to DD School;

(o) ongoing school fees for the parties’ children to attend DD School, to be paid as they fall due and not prior;

(p) Water bills for the property at Z Street, Suburb E by either the due date or within 7 days of provision of such bills to the respondent by the Applicant, whichever is the later; and

(q) continued payments to the respondent by way of his salary in the sum of $2,000 per week.

(r) rental payments for the HH Pty Ltd business premises to be paid as they fall due and not prior;

(s) the legal fees of HH Pty Ltd

(t) such other payments as agreed in writing between the parties.

5 Q Street, Suburb S

3. The applicant have sole use and occupation of the property known as 5 Q Street, Suburb S and the respondent is hereby restrained by injunction from attending upon 5 Q Street, Suburb S, other than with the express written consent of the applicant.

The claim by the Intervenors

4. Within 14 days, and quarterly thereafter, the Respondent provide to the Applicant the quantification of those funds that are held in the Suburb CC Business Trust Account (ending #...77) that are sales commissions payable to the Suburb CC Business upon settlement, and those funds in the same account that are not referable to sales commissions.

5. The Intervenors are not entitled to disclosure of the matters in the immediate above order without obtaining further direction from the court.

THE COURT NOTES THAT:

A. As of 31 October 2023, the parties are in agreement about the current state of disclosure, that being that nothing is currently outstanding with the exception of a single trust account.

Note: The form of the order is subject to the entry in the Court’s records.

Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).

Section 121 of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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