Reliance Financial Services v Lemery Holdings

In the matter of Reliance Financial Services v Lemery Holdings, the Federal Court of Australia was called upon to determine whether an interlocutory injunction should be granted to the applicant, Reliance Financial Services. Reliance sought to prevent Lemery Holdings from proceeding with a proposed transaction which would involve granting a charge over property owned by Lemery. The relief sought was based on the contention that the parties had entered into an agreement that would obligate Lemery to grant a charge over certain property to Reliance.

The primary legal issue before the Court was whether there was a sufficient basis to grant an interlocutory injunction. This required consideration of the strength of Reliance’s case on the merits, the balance of convenience, and the potential for irreparable harm if the injunction was not granted. The Court also needed to determine whether there was a serious question to be tried and whether the applicant could demonstrate a likelihood of success in establishing the existence of the alleged agreement.

The Court found that there was a serious question to be tried concerning the existence of the agreement. It considered the evidence provided by Reliance and found it to be sufficient to warrant the grant of an interlocutory injunction. The Court noted that while there were uncertainties regarding the enforceability of the agreement, the balance of convenience favoured granting the injunction. The potential harm to Reliance if the injunction was not granted outweighed the detriment to Lemery. As such, the Court concluded that an interlocutory injunction should be granted to Reliance Financial Services to prevent Lemery from proceeding with the proposed transaction until the matter could be fully determined.