Axent Holdings Pty Ltd v Compusign Australia Pty Ltd (No 3) [2018] FCA 6

Axent Holdings Pty Ltd v Compusign Australia Pty Ltd (No 3) [2018] FCA 6

The interests of justice did not justify departing from the ordinary position under r 40.13. Hi-Lux's unsuccessful security for costs application was not shown to be wholly misconceived or tactical, the likely delay before completion of the proceeding was not sufficient, and although the security for costs issues were separate and discrete, the application was argued efficiently and did not involve undue difficulty or complexity. A lump sum assessment at that stage would require further work and expense and there was no independent basis for it.

Jurisdiction
Australia
Judgment Date
11 January 2018
Procedural Posture
Costs Application in an Intellectual Property Patents Proceeding / Determined on the Papers After Dismissal of the Second Respondent's Application for Security for Costs
Outcome
The second respondent was ordered to pay the applicant's costs of and incidental to the application for security for costs, as agreed or taxed; the applicant's application for costs to be paid forthwith and assessed on a lump sum basis if not agreed was dismissed.
Legal Topics
['interlocutory Costs' 'security for Costs' 'costs Payable Forthwith' 'lump Sum Costs Assessment' 'federal Court Rules 2011 (cth) R 40.13']

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Procedural Posture

Costs Application in an Intellectual Property Patents Proceeding / Determined on the Papers After Dismissal of the Second Respondent's Application for Security for Costs

  1. 1 ["Whether the costs ordered in favour of the applicant on the second respondent's unsuccessful security for costs application should be assessed on a lump sum basis if not agreed and paid forthwith." 'Whether the interests of justice justified departing from the ordinary position in r 40.13 of the Federal Court Rules 2011 (Cth).']

Ratio Decidendi

The interests of justice did not justify departing from the ordinary position under r 40.13. Hi-Lux's unsuccessful security for costs application was not shown to be wholly misconceived or tactical, the likely delay before completion of the proceeding was not sufficient, and although the security for costs issues were separate and discrete, the application was argued efficiently and did not involve undue difficulty or complexity. A lump sum assessment at that stage would require further work and expense and there was no independent basis for it.

Court Disposition

The second respondent was ordered to pay the applicant's costs of and incidental to the application for security for costs, as agreed or taxed; the applicant's application for costs to be paid forthwith and assessed on a lump sum basis if not agreed was dismissed.

Orders

  • ["The second respondent pay the applicant's costs of and incidental to the application for security for costs, as agreed or taxed." "The applicant's application for an order that the costs payable by the second respondent be paid forthwith (assessed on a lump sum basis, if not agreed) be dismissed."]