North Shore Property Developments Pty Ltd (in liq) v Haddad [2024] FCA 728

North Shore Property Developments Pty Ltd (in liq) v Haddad [2024] FCA 728

The application for security for costs was refused on the basis that the deed of indemnity does not reliably guarantee payment for adverse costs and is not sufficient to obviate the need for security, but the discretion to order security is not enlivened in these circumstances, especially considering the nature of the applicants, the benefit to a creditor whose position is neutral, and the delay in bringing the application.

Jurisdiction
Australia
Judgment Date
05 July 2024
Procedural Posture
Interlocutory Application / Application for Security for Costs
Outcome
interlocutory application dismissed
Legal Topics
['security for Costs' 'liquidator Indemnity' 'litigation Funding' 'timing of Interlocutory Applications']
['practice and Procedure' 'corporations Law' 'corporate Insolvency'] ['security for Costs' 'liquidator Indemnity' 'litigation Funding' 'timing of Interlocutory Applications']

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Procedural Posture

Interlocutory Application / Application for Security for Costs

Legal Issues

  1. 1 ['Whether deed of indemnity between liquidator and Deputy Commissioner of Taxation is sufficient to obviate the need for security for costs' 'Whether security for costs should be ordered against a liquidator, a natural person' 'Appropriate exercise of discretion having regard to delay in interlocutory application' "Nature of third-party creditor's interest in proceedings"]

Ratio Decidendi

The application for security for costs was refused on the basis that the deed of indemnity does not reliably guarantee payment for adverse costs and is not sufficient to obviate the need for security, but the discretion to order security is not enlivened in these circumstances, especially considering the nature of the applicants, the benefit to a creditor whose position is neutral, and the delay in bringing the application.

Court Disposition

interlocutory application dismissed

Orders

  • ['The interlocutory application of 5 April 2024 be dismissed.' "The respondents pay the applicants' costs of the application as agreed or assessed."]