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Note: Mr. Farkas (Claimant) sued Mr. Wang (Judgment Debtor) and won a judgment that Judgment Debtor sought to appeal.

Claimant alleged that Judgment Debtor sought to divest assets to avoid paying the judgment. Claimant believed that three properties were being sold and obtained writs of execution to prevent the sale. To satisfy the judgment, Judgment Debtor obtained a bank guarantee of AUS 400,000. When Judgment Debtor posted the bank guarantee, Claimant had allowed the writs of execution against the properties to expire. On appeal to the Supreme Court of New South Wales, Court of Appeal, the decision was reversed. Claimant then sought to appeal to the High Court of Australia.

Claimant alleged because the writs of execution had expired and that Judgment Debtor had a tax case brought against him and would be subject to seizure under the Proceeds of Crime Act, he would not be able to collect the judgment from Judgment Debtor if Claimant prevailed on appeal to the High Court and the guarantee was canceled. Claimant sought an injunction preventing Judgment Debtor from cancelling the bank guarantee while Claimant appealed further to the High Court of Australia. Because the bank guarantee would be withdrawn once the official order reversing the lower court was issued, the Supreme Court of New South Wales, Court of Appeal, Basten, JA, ordered that the proceeds of the guarantee be paid in to the court pending resolution of the appeal by the High Court.

[JAH]

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This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.