Ingot Capital Investments Pty Ltd & Ors v Macquarie Equity Capital Markets Ltd & Ors [2002] NSWSC 609

Ingot Capital Investments Pty Ltd & Ors v Macquarie Equity Capital Markets Ltd & Ors [2002] NSWSC 609

Court has jurisdiction to order security for costs against plaintiffs where there is no complete overlap of claims or identity; differences between plaintiffs' claims make it inappropriate to rely on the 'co-plaintiff of substance' rule. Security is necessary to protect defendants from inability to recover costs from impecunious plaintiffs. Security should be provided by bank guarantees in tranches to avoid prejudice to plaintiffs.

Parties
First Plaintiff/respondent: Ingot Capital Investments Pty Ltd; Second Plaintiff/respondent: AOIT Ltd; Third Plaintiff/respondent: ASC Pty Ltd; Fourth Plaintiff/respondent: Australian Opportunities Investment Trust PLC; Fifth Plaintiff/resopndent: Eastern Estates Securities Ltd; Sixth Plaintiff/respondent: Ingot Capital Management Ltd; First Defendant/applicant: Macquarie Equity Capital Markets Ltd; Second Defendant/applicant: Macquarie Equities Ltd; Third Defendant/applicant: Macquarie Bank Ltd; Fifth Defendant/applicant: Jonathan Paul Beach; Twelfth Defendant/applicant: John Trowbridge Consulting Pty Ltd; Fourteenth Defendant/applicant: Andrew Mutton and Persons in NSW Listed in Schedule "A" to the Summons
Jurisdiction
Australia
Judgment Date
09 July 2002
Procedural Posture
Motions for Security for Costs / Interlocutory Judgment
Outcome
Security for costs ordered against plaintiffs.
Legal Topics
Security for Costs, Jurisdiction, Impecuniosity, Corporate Regulation, Misrepresentation, Duty of Care
Civil Procedure Corporations Law Equity Security for Costs Jurisdiction Impecuniosity Corporate Regulation Misrepresentation +1 more

Case Brief

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Parties

Ingot Capital Investments Pty Ltd

First Plaintiff/respondent

AOIT Ltd

Second Plaintiff/respondent

ASC Pty Ltd

Third Plaintiff/respondent

Australian Opportunities Investment Trust PLC

Fourth Plaintiff/respondent

Eastern Estates Securities Ltd

Fifth Plaintiff/resopndent

Ingot Capital Management Ltd

Sixth Plaintiff/respondent

Macquarie Equity Capital Markets Ltd

First Defendant/applicant

Macquarie Equities Ltd

Second Defendant/applicant

Macquarie Bank Ltd

Third Defendant/applicant

Jonathan Paul Beach

Fifth Defendant/applicant

John Trowbridge Consulting Pty Ltd

Twelfth Defendant/applicant

Andrew Mutton and Persons in NSW Listed in Schedule "A" to the Summons

Fourteenth Defendant/applicant

Procedural Posture

Motions for Security for Costs / Interlocutory Judgment

Legal Issues

  1. 1 Whether the court has jurisdiction to order security for costs against some, but not all, plaintiffs
  2. 2 Whether differences between plaintiffs' claims allow for separate costs orders
  3. 3 Whether plaintiffs' impecuniosity was caused by defendants

Ratio Decidendi

Court has jurisdiction to order security for costs against plaintiffs where there is no complete overlap of claims or identity; differences between plaintiffs' claims make it inappropriate to rely on the 'co-plaintiff of substance' rule. Security is necessary to protect defendants from inability to recover costs from impecunious plaintiffs. Security should be provided by bank guarantees in tranches to avoid prejudice to plaintiffs.

Court Disposition

Security for costs ordered against plaintiffs.

Orders

  • Plaintiffs must provide security for costs to the first, second, third, fifth, twelfth, and fourteenth defendants by Australian bank guarantees.
  • For Macquarie (first, second, third defendants): $518,377 by 23 July 2002; $633,571 twelve weeks before trial.