Life Airbag Co of Australia Pty Ltd & Ors v Life Airbag Co (New Zealand) Ltd & Ors [1998] FCA 545

Life Airbag Co of Australia Pty Ltd & Ors v Life Airbag Co (New Zealand) Ltd & Ors [1998] FCA 545

An order for security for costs should not be made against an insolvent corporate applicant where there are natural person co-applicants with overlapping claims and costs liabilities, and no artificial joinder is present, so that all applicants would likely face any costs order; further, where applicants have required respondents to incur substantial wasted costs through repeated amendments to pleadings and delay, justice requires that interlocutory costs be ordered payable forthwith.

Jurisdiction
Australia
Judgment Date
22 May 1998
Procedural Posture
Application / Interlocutory Determination on Security for Costs and Interlocutory Costs Orders
Outcome
Application for security for costs dismissed. Orders made that the applicants pay certain respondents’ interlocutory costs forthwith. No order for costs for 4 May 1998 hearing. Liberty granted to relist security for costs if natural person applicants cease to be parties or liability ceases to overlap.
Legal Topics
['security for Costs' 'interlocutory Costs' 'exercise of Discretion Under S 1335(1) Corporations Law' 'payment of Costs Forthwith' 'overlapping Interests in Costs Liability']
['procedure' 'corporate Law' 'civil Litigation'] ['security for Costs' 'interlocutory Costs' 'exercise of Discretion Under S 1335(1) Corporations Law' 'payment of Costs Forthwith' 'overlapping Interests in Costs Liability']

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Procedural Posture

Application / Interlocutory Determination on Security for Costs and Interlocutory Costs Orders

Legal Issues

  1. 1 ['Whether security for costs should be ordered against an insolvent corporate applicant where other co-applicants are natural persons and there is full overlap in issues and representation;' 'Whether interlocutory costs should be ordered to be payable forthwith before final determination of the proceeding.']

Ratio Decidendi

An order for security for costs should not be made against an insolvent corporate applicant where there are natural person co-applicants with overlapping claims and costs liabilities, and no artificial joinder is present, so that all applicants would likely face any costs order; further, where applicants have required respondents to incur substantial wasted costs through repeated amendments to pleadings and delay, justice requires that interlocutory costs be ordered payable forthwith.

Court Disposition

Application for security for costs dismissed. Orders made that the applicants pay certain respondents’ interlocutory costs forthwith. No order for costs for 4 May 1998 hearing. Liberty granted to relist security for costs if natural person applicants cease to be parties or liability ceases to overlap.

Orders

  • ["The applicants pay the second, third, fourth and eighth respondents' costs of and incidental to hearings before Branson J on 16 October 1997, 27 October 1997, and 10 March 1998, such costs payable forthwith." "Vary paragraph 2 of the order of Whitlam J made 11 September 1997 by deleting 'but not at liberty to...