SALTZER & PACEK (No.3)

Case [2020] FCCA 1381


FEDERAL CIRCUIT COURT OF AUSTRALIA

SALTZER & PACEK (No.3) [2020] FCCA 1381
Catchwords:
FAMILY LAW – Application for stay of operation of orders pending appeal – where applicant had sought ex parte injunction to prevent respondent in her capacity as director of company, executing contract for sale of land – where substantive basis of application was that he did not want property sold until discovery complete – where it was accepted that the respondent had legal entitlement to execute contract – where submission made that the position was analogous to that of a party who sought to prevent sale on basis that order conferring right to purchase the property would be sought at trial – where such relief not sought in relation to this property in initiating application – where respondent proposes to retain net proceeds of sale in controlled monies account – where no case advanced that the respondent was acting in breach of directors duties – where applicant disavows that the company is trustee of trust – where no claim that respondent acting oppressively as shareholder – where no claim or evidence that the respondent wasting or dissipating assets – where no other serious question to be tried – where balance of convenience did not favour grant of relief – where application refused and respondent permitted to enter contract of sale – stay pending appeal – applicable principles – relevant considerations – whether appeal would be rendered nugatory – whether proposed grounds of appeal are of merit – discretionary considerations – where applicant offers undertakings – where applicant undertakes to pursue appeal with all due diligence – whether application bona fide – whether likelihood of appeal being heard in near future or being expedited – application granted upon undertakings.

Legislation:

Family Law Act 1975 (Cth), ss.79, 81, 106B

Family Law Rules 2004 (Cth), rr.1.05, 22.11
Federal Circuit Court Act 1999 (Cth), ss.67, 68

Cases cited:

Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570

Aldridge & Keaton (Stay Appeal) [2009] FamCAFC 106

Alexander v Cambridge Credit Corporation (1985) 2 NSWLR 685

Allesch v Maunz (2000) 203 CLR 172
AMS & AIF (1999) 199 CLR 160

Ascot Investments Pty Ltd v Harper (1981) 148 CLR 337
Attaway & Balloch [2019] FamCAFC 206
Baghti & Baghti and Ors (No.3) (2013) FamCAFC 201
Bass & Bass [2015] FamCA 186
Blue Seas Investments Pty Ltd v Mitchell (2000) 25 FamLR 65
Britt & Britt [2020] FamCAFC 51
Carson & Hillman [2018] FamCA 605
Clemett & Clemett (1981) FLC 91-013
Costello & Condi [2012] FamCA 355
European Bank Ltd v Evans (2010) 240 CLR 432
Grange & Grange and Ors (No 2) [2018] FamCA 241
Gronow & Gronow (1979) 144 CLR 513
House v The King (1936) 55 CLR 499

Jennings Construction Ltd v Burgundy Royale Investments Pty Ltd (1986) 161 CLR 681

JRN & KEN v IEG & BLG (1998) 72 ALJR 1329
K & B (2006) FLC 93-288
Kennon v Spry (2008) 238 CLR 366
Lockley & Bardot

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Details
AGLC
SALTZER & PACEK (No.3) [2020] FCCA 1381
Case
[2020] FCCA 1381
Decision Date

CaseChat Overview and Summary

The applicant, Mr. Saltzer, sought a stay of orders pending an appeal, specifically to prevent the respondent, Ms. Pacek, in her capacity as director of a company, from executing a contract for the sale of land. The substantive basis for the application was Mr. Saltzer's desire to delay the sale until discovery was complete, despite acknowledging Ms. Pacek's legal entitlement to enter into the contract. The matter came before A. Kelly J.

The court was required to determine whether to grant a stay of the orders permitting the sale of the land pending the outcome of Mr. Saltzer's appeal. This involved considering the applicable principles for granting a stay, including whether the appeal would be rendered nugatory, the merit of the proposed grounds of appeal, and discretionary considerations such as the bona fides of the applicant and the likelihood of the appeal being heard expeditiously.

A. Kelly J reasoned that the applicant had not established a serious question to be tried, nor did the balance of convenience favour the grant of a stay. The court noted that no case had been advanced that Ms. Pacek was acting in breach of her directors' duties, that the company was a trustee, that Ms. Pacek was acting oppressively as a shareholder, or that assets were being wasted or dissipated. While the respondent proposed to retain the net proceeds of sale in a controlled monies account, this did not outweigh the lack of a serious question to be tried. However, the court ultimately granted the application for a stay pending appeal, conditional upon Mr. Saltzer providing undertakings to pursue the appeal with all due diligence and that the application was bona fide.

Orders

Orders of the court

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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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