Chen v Jack's Ventures Limited HC Auckland CIV-2011-404-000456

[2011] NZHC 708

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2011-404-000456

BETWEEN  QIANGUAN CHEN, RIUYU LIN AND KENWEI CHEN

Applicants

ANDJACK'S VENTURES LIMITED First Respondent

ANDJIE ZHOU AND YULIAN LI Second Respondents

Hearing:         3 February 2011

Counsel:         T J Herbert for the Applicants

Judgment:      3 February 2011

JUDGMENT OF WOOLFORD J

Solicitors/Counsel:

T Herbert, PO Box 4338, Auckland 1140

CHEN V JACK'S VENTURES LIMITED HC AK CIV-2011-404-000456 3 February 2011

[1]      The applicants make a without notice application for a freezing order against the respondents to prevent the respondents removing assets located inside New Zealand or of disposing, dealing with or diminishing the value of those assets or those located outside New Zealand.

[2]      The applicants have filed a full affidavit from the first named applicant and an affidavit of Chun Zhang annexing a translation of an agreement between the parties.   In addition, a statement of claim, notice of proceeding, undertaking as to damages and a memorandum of counsel in support of the interlocutory application have been filed together with a draft order.

[3]      After having read the proceedings I am satisfied that the applicants have shown that they have a good arguable case, that the respondents have assets inside the jurisdiction and that there is a risk of dissipation of those assets.   From the affidavits filed it also appears to me that the applicants have disclosed all material facts. There is also no suggestion that they are acting in anything but good faith.

[4]      Two ancillary orders are also sought.  The first is for discovery of the nature, extent and value of the respondents’ assets.  The second is that the respondents be restrained from leaving New Zealand and that they should deliver up their passports to the Court.   While the second ancillary order sought is a somewhat draconian measure, I am satisfied that it is appropriate in the circumstances of this case for a short period.

[5]      Accordingly,  I  make  orders  in  terms  of  the  draft  order  filed  with  the application and direct that the date of Thursday, 3 March 2011 be inserted as the date after which the freezing order will have no effect unless on that date it is continued or renewed.  I also direct that the proceeding be listed for mention in the Duty Judge List in the Auckland High Court on Thursday, 3 March 2011.   On that date the respondents or their counsel are entitled to be heard in opposition to the continuation or renewal of the order.

[6]      Orders accordingly.

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Woolford J