Western Australian Real Estate Investment Ltd v Pontoon Holdings Pty Ltd

Western Australian Real Estate Investment Limited brought an action against Pontoon Holdings Pty Ltd, seeking various reliefs including a Mareva injunction to prevent the defendant from disposing of assets. The case was heard in the Supreme Court of Western Australia. The primary dispute centred around allegations of fraud, misrepresentation, and breach of fiduciary duty in connection with a property transaction.

The court needed to determine whether the plaintiff had demonstrated a strong prima facie case of fraud, misrepresentation, and breach of fiduciary duty, and whether the balance of convenience favoured the grant of a Mareva injunction. The test for a Mareva injunction involves proving that there is a strong likelihood of the defendant disposing of assets to defeat judgment and that the balance of convenience favours the grant of the injunction. The court emphasised that each case turns on its own facts, and the decision to grant such an injunction must be carefully considered.

The court found that the plaintiff had established a strong prima facie case on the allegations of fraud, misrepresentation, and breach of fiduciary duty. However, the court also weighed the potential harm that the grant of a Mareva injunction would cause to the defendant's business and its creditors against the plaintiff's interest in securing its potential judgment. Ultimately, the court determined that the balance of convenience did not favour the grant of a Mareva injunction at that stage of the proceedings. The court emphasised that its decision was based on the specific circumstances of this case and that the test for a Mareva injunction remains fact-specific.