Century Insurance Ltd (in provisional liq) & Ors v The New Zealand Guardian Trust Ltd & Ors The New Zealand Guardian Trust Ltd & Anor v Gunson, David [1997] FCA 1044

Century Insurance Ltd (in provisional liq) & Ors v The New Zealand Guardian Trust Ltd & Ors The New Zealand Guardian Trust Ltd & Anor v Gunson, David [1997] FCA 1044

Security for costs ordered because cross-claimants are resident outside jurisdiction, local assets are limited, and recovery of costs in New Zealand could cause inconvenience/delay, despite available reciprocal enforcement.

Parties
First Applicant: Century Insurance Limited (In Provisional Liquidation); Second Applicant: Edward John Bebbington; Second Applicant: Delores Edna Bebbington; First Respondent: The New Zealand Guardian Trust Limited; Second Respondent: NZI International Trustee Company Limited; Third Respondent: Donald Andrew Davies; First Cross Claimant: The New Zealand Guardian Trust Limited; Second Cross Claimant: NZI International Trustee Company Limited; Cross Respondent: David Gunson
Jurisdiction
Australia
Judgment Date
27 June 1997
Procedural Posture
Motion for Security for Costs on Cross Claim / Interlocutory
Outcome
Order for security for costs made in part
Legal Topics
Security for Costs, Jurisdiction, Reciprocal Enforcement of Judgments, Corporate Assets
Practice and Procedure Security for Costs Jurisdiction Reciprocal Enforcement of Judgments Corporate Assets

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Parties

Century Insurance Limited (In Provisional Liquidation)

First Applicant

Edward John Bebbington

Second Applicant

Delores Edna Bebbington

Second Applicant

The New Zealand Guardian Trust Limited

First Respondent

NZI International Trustee Company Limited

Second Respondent

Donald Andrew Davies

Third Respondent

The New Zealand Guardian Trust Limited

First Cross Claimant

NZI International Trustee Company Limited

Second Cross Claimant

David Gunson

Cross Respondent

Procedural Posture

Motion for Security for Costs on Cross Claim / Interlocutory

Legal Issues

  1. 1 Whether cross-claimants should give security for costs owing to being resident outside jurisdiction and location of their assets
  2. 2 Relevance and sufficiency of assets within jurisdiction to satisfy a costs order
  3. 3 Impact of reciprocal enforcement legislation in home country

Ratio Decidendi

Security for costs ordered because cross-claimants are resident outside jurisdiction, local assets are limited, and recovery of costs in New Zealand could cause inconvenience/delay, despite available reciprocal enforcement.

Court Disposition

Order for security for costs made in part

Orders

  • Cross-Claimants to provide $50,000 security for Cross-Respondent's costs by bank guarantee within 21 days.
  • Stay of cross-claim proceedings if security not provided in 21 days.