austlii:cth/FedCFamC1F/2025/958
General information, not legal advice.
FedCFamC1F
2025-12-23
Hartnett J
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 1)
(a) make available to the applicant wife's lawyers a set of keys to the property located at F Street, Region G('[Region G] property') and all vehicles located at the Region G property; and
(b) provide unfettered access to the applicant wife to all areas of the Region G property since 3 April 2025 and in the event that any such items have been sold to a third party purchaser, provide the wife's lawyers with full particulars in writing of the purchaser, the sale price and the location of the sale proceeds.
(a) Contract of sale and vendor's statement (including Business Contract);
(b) Client Authorisation Form;
(c) Verification of Identity Form;
(d) Duties Forms;
(e) mortgage discharge authorities;
(f) Application documents for Foreign Resident Capital Gains Tax Clearance Certificate on behalf of Mr Chapuys;
(g) removing all caveats held over the Region G property;
(h) removing all PPSR registrations held over the Region G property, including but limited to the Chapuys Family Trust, Mr Chapuys and H Financial Services;
(i) any settlements or rectification plans with the J Council and the Environmental Protection Authority ('EPA').
(a) upon the settlement of the sale the proceeds be disbursed as follows:
(i) firstly, to pay the costs, commissions and expenses of the sale;
(ii) secondly to discharge the mortgage to L Pty Ltd secured against the Region G property ("the mortgage");
(iii) thirdly, a payment of $389,000 to N Pty Ltd to resolve the Supreme Court of Victoria proceedings with reference number: [redacted];
(iv) fourthly, and not before 21 days of this Order, a payment to Macpherson Kelley in the sum of $106,266.32 for the costs of the commercial litigation matters relating to N Pty Ltd and other litigation involving C Pty Ltd. The husband is at liberty to seek a taxation of this sum within 14 days hereof and in the event he does so, then such funds shall not be paid out until completion of the taxation.
(v) fifthly, pursuant to section 79 of the Family Law Act 1975 the sum of $355,933.09 to the Wife by way of part property settlement; and,.
(vi) sixthly, the balance then remaining to the Macpherson Kelley trust account to be held on trust in an interest-bearing account on behalf of the husband, wife, the Chapuys Family Trust and C P/L pending further order of the Court.
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 the pseudonym Chapuys & Chapuys has been approved pursuant to subsection 114Q(2) of the Family Law Act 1975 (Cth).
THE COURT ORDERS, BY CONSENT, THAT:
......
The Applicant wife ("the wife") and the Respondent husband ("the husband") each forthwith do all such acts and things as may be necessary to sell ("the sale") the land at [F Street], [Region G] ("the [Region G] property"), including all improvements and fixtures and all of the assets held by [C] Pty Ltd, collectively the "[C] Business".
The husband forthwith do all things necessary to remove the caveat held by [N] Pty Ltd against the [Region G] property.
Seven days prior to the settlement of the sale, the husband vacate the [Region G] property leaving the said property, all improvements and fixtures and all assets of [C] P/L located on the property in good order.
The wife have the exclusive right, to the exclusion of the husband, save that the wife is required to consult with the husband as to the sale and to provide him with 5 business days' notice of any intention to sell the [Region G] property and business assets, to represent [C] P/L and the [Chapuys] Family Trust in relation to all and any negotiations and discussions for the sale of the [Region G] property, the assets of [C] P/L and/or the [C] Business with any potential purchaser including but not limited to [Mr E].
8. Upon the settlement of the sale the proceeds be disbursed as follows:
8.1 Firstly, to pay the costs, commissions and expenses of the sale;
8.2 Secondly, to discharge the mortgage to [L] Pty Ltd secured against the [[Region G] property ("the mortgage");
8.3 Thirdly, the balance then remaining to the Macpherson Kelley trust account to be held on trust in an interest-bearing account on behalf of the husband, wife, the [Chapuys] Family Trust and [C] P/L pending further order of the Court.
Time for the husband to make the payment to the wife of $100,000 as provided for by Order 2.2 of the orders made on 30 October 2024 be extended to 4.00pm on Wednesday 12 March 2025.
Orders 3.1 and 3.2 of the orders made on 30 October 2025 shall be varied to include all car parts, engine parts and other equipment associated with each of the motor vehicles.
Order 9 made on 26 September 2024 be varied to provide that until 4.00pm on Wednesday 12 March 2025:
11.1 The husband shall be permitted to sell either or both of the motor vehicle [1] described in Order 3.1 of the orders made on 30 October 2024 (as varied) and the motor vehicle [2] described in Order 3.2 made on 30 October 2024 (as varied) ("the vehicles") for the sole purpose of giving effect to Order 7 and 9 herein;
11.2 In the event that the husband sells either or both of the vehicles and any car parts, engine parts or other equipment associated with either of them, he shall within 24 hours of any sale provide to the wife:
11.2.1 Full particulars and contact details of any purchasers;
11.2.2 A detailed description of what has been sold including the vehicle, car parts, engine parts or other associated equipment;
11.2.3 Full particulars of the sale price and any terms and conditions;
11.2.4 Copies of all documents relevant to or arising from the said sale(s).
- In the event of the husband selling either or both of the vehicles and/or car parts, engine parts or other associated equipment, the proceeds of sale shall be applied:
12.1 First, to pay any costs, commissions and expenses of the sale;
12.2 Secondly, to pay to the wife the sum of $100,000 in compliance with Order 2.2 made on 30 October 2025;
12.3 Thirdly, to pay to the husband the sum of $100,000 by way of a part property settlement
12.4 Fourthly, to discharge or partially discharge any debt owed to [Ms B]; and
12.5 Fifthly, the balance then remaining to be held on trust by the husband's solicitors in an interest bearing account on behalf of the husband, wife, the [Chapuys] Family Trust and [C] P/L.
- Within 48 hours the husband is to provide to the wife via her solicitors a username profile and password to enable her to view all transactions on the "Square" account operated by the Husband into which takings and/or income received by the [C] Business are paid.
- Within 48 hours the parties are to each cause their solicitors to provide the other party's solicitor with a list of all documents required by way of disclosure and within 7 days of receiving such list each party provide copies of the documents requested.
15. Each party's costs of this day be reserved to the adjourned hearing date.
16. Certify for counsel.
- There is liberty to the parties to apply on short notice to the chambers of Justice Hartnett for an urgent listing.
(a) her Application in a Proceeding filed 30 October 2025;
(b) her affidavits and annexures attached thereto, as filed on 30 October 2025, 13 November 2025 and 15 November 2025.
(c) affidavit of Mr E filed 13 November 2025; and
(d) documents as tendered in evidence during the hearing.
- Smoke - There is a smoke risk management and monitoring program that was recently developed for the site. It involved developing a procedure to minimise smoke impacts from the burnout pad on nearby residents. When the wind is blowing towards residents (monitored via an onsite weather station), it is expected that burnouts will pause until there is suitable weather conditions. The notice related to this has been revoked, however the expectation that the plan will be implemented remains and forms part of your General Environmental Duty under the Environment Protection Act.
- Waste - There is a current Environmental Action Notice on the site to remove IBCs and Drums containing wastes from near the burnout pad, these must be removed from the site within 12 months (attached).
There is also a large stockpile of tyres at the site which need to be removed (no notice issued for this).
- EPA has recently conducted a drone flight using ground penetrating radar to determine whether waste has been buried at the site after it was alleged, no results have been provided as yet. There may be an expectation to remove any wastes buried at the site.
- Septic - The septic system is currently failing, it is believed there is a broken pipe from the septic tanks (x2) to the onsite lagoon storage and waste is currently being periodically pumped out of the tanks directly. A Land Capability Assessment is required to assess the suitability of the current system and provide advice on upgrades required. Council may need to be involved depending on the assessed size and loads required for a new system.
(1) the vendor in the business sale contract should be the Chapuys Family Trust, not the C business, as the C business did not own any assets or operate any business;
(2) the values attributed to the business assets in the business sale agreement and in negotiations between the wife and Mr E were incorrect, uncommercial and that the wife was dissipating the asset pool; and
(3) the amount of $300,000 which had been negotiated with Mr E as the cost of the required works to comply with the EPA was incorrect and arbitrary.
(a) the inclusion of the Chapuys Family Trust as vendor to the business sale agreement;
(b) the large number of assets no longer being included in the business sale; and
(c) the inclusion of the mechanism to hold the $300,000 for EPA issues in trust.
In the Court hearing yesterday, your client's counsel...advised the Court that the values prescribed to the assets in the Schedule 5 asset list were too high and criticised our client for agreeing to these values.
...
Should Mr [E] somehow be persuaded to change the figures of each of the assets in [S]chedule 5, please advise as a matter of urgency the following:
- On what basis your client seeks the valuations be obtained;
- Who your client proposes to engage to complete the valuations; and
- How your client proposes the valuations be paid for.
There was subsequently no response sent by or on behalf of the husband.
We are instructed that your client is currently in default of his obligations pursuant to the terms and conditions of the Loan Agreement dated 3 February 2022 and the Variation Loan Agreement dated 25 February 2025.
We note your advice that an in principal agreement has been reached for the sale of the [Region G] property.
We are instructed that the sale of the said property has been on going for some time without conclusion.
Accordingly, and in order that our client is in a position to consider the matters contained in your letter, we are instructed to request, as a matter of urgency, that an update be provided as to the progress of the sale of the said property.
In the event that a sale has not been achieved within 14 days, our client shall have no option but to commence proceedings against your client as a result of your client's default under the loan agreement.
...to ensure whatever amount the sale price may be reduced is accurate market value (rather than over-inflated and arbitrary), the parties must engage an independent valuer to resolve the dispute as to the values of the assets;
To identify which item (if any) require independent valuation, our client will respond to the list included in the proposed contract with Mr [E] (annexed to his most recent affidavit) by noting:
(a) Whether the item listed is at the property;
(b) To the extent the item is at the property, whether he agrees to the value to be adopted; and
(c) Where there is no agreement, an independent valuer be appointed.
(a) a portable diesel generator with a value of $5,000;
(b) a portable 8kva T Generator with a value of $2,500;
(c) a 150VKA U generator with a value of $5,000.
(d) a 100KVA V generator with a value of $3,000.
(e) 165KVa W Generator (new) with a value of $55,000. This generator is hardwired into the engineering compound and is the main electrical system and provides power to the whole property. The costs of replacing this if it is removed far exceeds the value of $55,000.
The agreement with [Mr E] is that he will pay $4.1 million less $468,933.10 owed to [E business], less $300,000 for the EPA clean up costs...less an amount to be deducted for items missing from the business assets list. Even if that amount is $400,000 (although [Mr E] and I have agreed to $390,000), where the land is worth $1,800,000 then [Mr E] is paying a very good price, and probably over market value, for the remaining business assets.
(1) The quote from Z business for the removal of Intermediate Bulk Containers ("IBC") and gallons dated 29 July 2024 estimated the work at approximately $99,055. However, this quote did not consider the tyre removal which the EPA advised was required to be done.
(2) The quote dated 1 September 2025 from AB business totals $377,710. This provides for the removal of the "IBC's, gallon drums, burnt tyres and also digging and disposal of buried waste".[2] This is an issue that had been raised by the EPA, but no EPA notice had yet been issued. The quote for the disposal of the IBC's, gallon drums and tyres (without the digging of soil and disposal of buried waste) was approximately $200,000.
(3) The quote dated 29 August 2025 from AC Plumbing for the installation of a septic system estimated that the cost would be approximately $80,960.
(4) The quote from AD Plumbing received 28 August 2025 for the installation of a new septic system estimated that the costs would be approximately $120,000 - $130,000.
The other investors have removed funds from their investors to have the funds available for settlement, but due to the constant delays in having [C business] to be sold, I have been advised by my investors if this does not settle over the next few months, they will pull out of the sale. This would cause me to not be able to purchase [C business].
(1) the husband's refusal to sign the contract of sale of the Region G property; and
(2) the removal of the H Financial Services PPSR registration, discussed below.
I certify that the preceding fifty-nine (59) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Hartnett.
[1] Annexure "KW-14" to the wife's affidavit filed 30 October 2025.
[2] Wife's affidavit filed 30 October 2025, paragraph 43.