austlii:cth/FedCFamC1F/2025/768
General information, not legal advice.
FedCFamC1F
2025-10-31
Dr P, Wilson J
Original judgment source is linked above.
Jess & Jess (No 19) [2025] FedCFamC1F 768
FAMILY LAW - PRACTICE & PROCEDURE - a variety of contested interlocutory applications debated ahead of trial.
FAMILY LAW - DERIVATIVE ACTION APPLICATION - hearing of application deferred to 20 April 2025.
Family Law Act 1975 (Cth) s 95(2)
Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175
Papadopoulos & Papadopoulos (No 2) [2007] FamCA 1683
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
MR J AS LEGAL PERSONAL REPRESENTATIVE FOR MR JESS SNR (DECEASED)
MR JESS JNR & ORS (THE REPRESENTED THIRD PARTIES)
MR K & MR L AS TRUSTEES OF THE BANKRUPT ESTATE OF MR JESS SNR
(a) the notices of objection to the subpoenas filed by the wife (as set out in the Annexure);
(b) the wife's application that the second respondent grant "read-only" access as sought in paragraph 13 of her amended application dated 29 August 2025;
(c) the wife's application that the thirty-sixth respondent grant "read-only" access as sought in paragraph 14 of her amended application dated 29 August 2025;
(d) the wife's application that the second respondent produce the documents described in paragraphs 15(b) to (i) of her amended application dated 29 August 2025; and
(e) any issue as to outstanding material requested by the single expert business valuer (Mr DN of DO Advisors).
(a) in response to the notices of objection to the wife's subpoenas; and
(b) in support of the matters set out at 3(b) to (e) above.
(a) any submissions in reply to the case outlines of the other parties; and
(b) the joint court book and joint book of authorities.
Note: The form of the order is subject to the entry in the Court's records.
Note: This copy of the Court's Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Part XIVB of the Family Law Act 1975 (Cth) makes it an offence, except in very limited circumstances, to publish an account of proceedings that identify persons, associated persons, or witnesses involved in family law proceedings.
IT IS NOTED that publication of this judgment by this Court under a pseudonym Jess & Jess has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
"1. Pursuant to rule 15.06 of the Federal Circuit and Family Court of Australia (Family Law) Rules (Cth) (2021) all time be abridged and this matter be listed for an urgent hearing before the Honourable Justice Wilson on the next available date prior to Monday, 27 October 2025 (if possible).
Orders 5 to 11 made on 9 October 2025 be discharged and the further listing of the Wife's leave applications be adjourned to a date to be fixed (paragraphs 1 to 5 of the Wife's Amended Application dated 29 August 2025).
The following matters be set down to be heard before the Honourable Justice Wilson on an estimated duration of two days on 17 November 2025 and 18 November 2025:
(a) the notices of objection to the subpoenas filed by the Wife (as set out in the Annexure);
(b) the Wife's application that [Ms D Jess] be added as a party to the proceeding (paragraph 6(a) of the Wife's Amended Application dated 29 August 2025);
(c) the Wife's application that the Second Respondent grant "read-only" access as sought in paragraph 13 of her Amended Application dated 29 August 2025;
(d) the Wife's application that the Thirty-Sixth Respondent grant "read‑only" access as sought in paragraph 14 of her Amended Application dated 29 August 2025;
(e) the Wife's application that the Second Respondent produce the documents described in paragraphs 15(b) to (i) of her Amended Application dated 29 August 2025;
(f) any issue as to outstanding material requested by the single expert business valuer ([Mr DN of DO Advisors]).
- By 4:00pm on 31 October 2025 any written submissions and supporting affidavit material in support of the notices of objection to the Wife's subpoenas set out at 3(a) above be filed and served on all other parties.
- By 4:00pm on 6 November 2025, the Wife file and serve any written submissions and affidavit material on all other parties:
(a) in response to the notices of objection to the Wife's subpoenas;
(b) in support of the matters set out at 3(b) to (f) above
- By 4:00pm on 12 November 2025, any submissions and supporting affidavit material in response or in reply to any material filed by the Wife under order 5 be filed and served on all other parties.
- Any document not filed in accordance with the timetable above not to be relied on without leave.
- The Second Respondent is to comply with order 16(a), made on 9 October 2025, by 4:00pm on 31 October 2025.
- The time for compliance with order 17, made on 9 October 2025, be amended to 4:00pm on 31 October 2025.
10. Such further and other Orders as this Honourable Court deems appropriate."
THE HEARING CURRENTLY FIXED FOR 17, 18 AND 19 NOVEMBER 2025
(a) the wife's application for leave to bring a derivative action had been listed pursuant to orders made on 20 June 2025 and for a second time on 1 September 2025;
(b) the wife's legal representatives were in a position to prosecute the application for leave to bring the derivative action on 1 and 2 September and could have done so but for the actions of Mr Jess Jnr in his late filing of material ahead of the return date;
(c) the wife has failed to file her amended statement of claim in the derivative action, whether by 20 October 2025 or at all; and
(d) tracing is the end result of the application for leave to bring the derivative action.
(a) identified that unauthorised distributions totalling $281,416,660 had been made by X Pty Ltd ("[X Pty Ltd]") and by X3 Pty Ltd ("[X 3 Pty Ltd]") when each was trustee of the Jess Retail Unit Trust ("[JRUT]");
(b) dividends had been declared resulting in payments being made from BD1 Pty Ltd ("[BD1]") to BE1 of $85,155,000, from BN1 Pty Ltd to BE1 of $5,690,000 and from BD1 to BP Pty Ltd of $3,500,000;
(c) the property at DT Street, Suburb DU represented traceable proceeds of the Y Supply Business as -
(i) on 13 June 2023 BD1 paid BE1 $23,000,000 as a dividend;
(ii) on 14 June 2023 BE1 transferred $14,350,000 to BP Pty Ltd; and
(iii) on 14 June 2013 BP Pty Ltd transferred $14,327,036 to DK Lawyers which sum was used to purchase that property;
(d) the property at DV Street, Suburb DB represented tractable proceeds of the Y Supply Business as -
(i) on or about 13 June 2023 BD1 paid BE1 the sum of $23,000,000 as a dividend;
(ii) on or about 15 June 2023 BE1 transferred $39,000,000 to BP Pty Ltd; and
(iii) on or about 16 June 2023 BP Pty Ltd transferred $49,337,614 to DK Lawyers which sum was used to purchase that property;
(e) since 19 August 2025 the wife's legal representatives have continued the tracing exercise and have identified that the properties set out before had been purchased by applying funds from JRUT or BD1 -
(i) DW Street, Suburb DB, purchased for $8,200,000;
(ii) DX Street, Suburb CZ purchased for $2,900,000;
(iii) DY Street, Suburb DB purchased for $7,000,000;
(iv) DZ Street, City EA, NSW purchased for $4,010,000;
(v) EB Street, Suburb DB purchased for $7,500,000;
(vi) EC Street, Town ED, QLD purchased for $3,080,000;
(vii) EF Street, Suburb EG, WA purchased for $2,062,500; and
(viii) EH Street, Suburb EJ, NSW purchased for $3,050,000;
(f) the wife's counsel had been retained to plead claims set out in the proposed second further amended statement of claim as well as in the derivative action statement of claim;
(g) based on the tracing work already undertaken further amendments will be required in respect of transactions awaiting elucidation once documents in response to subpoenae are produced;
(h) up to $300,000,000 may be traced;
(i) that amount and the transactions relevant to it may be included in the proposed second further amended statement of claim and in the proposed derivative action statement of claim;
(j) since the hearing on 2 September 2025 the wife has issued nine subpoenae which the wife continues to press;
(k) there are 18 notices of objection on foot, 17 of which relate to the recent subpoenae; and
(l) on 25 September 2025 Mr DN requested further documents to enable him to prepare an accurate fees estimate, yet the wife does not have in her possession, power or control any of the documents requested by Mr DN whereas Mr Jess Jnr appears to have them, according to Mr AL.
(a) the wife has been unable to plead her available claims as fully and as well as she wishes;
(b) if she is forced to proceed with the application for leave to bring her derivative action claim on 17, 18 and 19 November 2025 she will almost certainly be forced to amend her pleadings again thereby adding to the costs of this litigation and prolonging its duration; and
(c) before being required to formally commence her application for leave to bring her derivative action proceeding the wife is entitled to investigate source documents and examine financial records and ascertain whether by such investigation and examination her contentions are corroborated or refuted.[5]
(a) her latest iteration of her further amended statement of claim is likely to be to hand; and
(b) documents produced by subpoena will have emerged by then.
I certify that the preceding forty-one (41) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Wilson.
(There were also notices filed by (i) Mr Jess Jnr dated 15.05.25 (dismissed) and (ii) Ms C Jess dated 15.05.25 (not pressed))
AAA PTY LTD AS TRUSTEE FOR THE BBB TRUST (ACN ...)
CCC PTY LTD AS TRUSTEE OF THE DDD TRUST (ACN ...)
X PTY LTD AS TRUSTEE OF THE JESS RETAIL UNIT TRUST (ACN ...)
SSS PTY LTD AS TRUSTEE OF TTT INVESTMENT TRUST (ACN ...)
BL PTY LTD (ACN ...) IN ITS OWN CAPACITY AND IN ITS CAPACITY AS TRUSTEE OF THE JESS PROPERTIES TRUST
EEE HOLDINGS PTY LTD (ACN ...) IN ITS OWN CAPACITY AND IN ITS CAPACITY AS TRUSTEE OF THE EEE TRUST
BA3 PTY LTD (ACN ...) IN ITS OWN CAPACITY AND IN ITS CAPACITY AS TRUSTEE OF THE BA3 TRUST
BK1 PTY LTD (ACN ...) IN ITS OWN CAPACITY AND IN ITS CAPACITY AS TRUSTEE OF THE BX TRUST
X 3 HOLDINGS PTY LTD (ACN ...) IN ITS OWN CAPACITY AND IN ITS CAPACITY AS TRUSTEE OF THE JESS RETAIL UNIT TRUST
[1] Transcript 24 October 2025, page 10 line 42.
[2] Transcript 24 October 2025, page 18 lines 36 - 39.
[3] Transcript 24 October 2025, page 22 line 16.
[4] Transcript 24 October 2025, page 24 line 20.
[5] Papadopoulos & Papadopoulos (No 2) [2007] FamCA 1683 (at [57] Cronin J).
[6] Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175.
Aon Risk Services Australia Ltd
Australian National University
(2009) 239 CLR 175