Capitalcorp Finance & Leasing Pty Ltd v Aussie Car Loans Pty Ltd [2014] FCA 203

Capitalcorp Finance & Leasing Pty Ltd v Aussie Car Loans Pty Ltd [2014] FCA 203

Security for costs was ordered against Capitalcorp in the primary proceeding because, in light of indications that it was not trading, unanswered requests for financial information, securities over its assets, delay in prosecuting the proceeding, and its failure to adduce evidence about trading and pecuniosity, there were serious questions about its ability to pay a costs order. No security was ordered in respect of the second cross-claim because the Court generally accepted Capitalcorp's submissions about that claim. Quantum was fixed by a broad brush assessment at one third of the estimated future costs, being $56,500.

Jurisdiction
Australia
Judgment Date
12 March 2014
Procedural Posture
Interlocutory Application for Security for Costs / Judgment on Application for Security for Costs
Outcome
Application for security for costs granted in part.
Legal Topics
['security for Costs' 'quantum of Security' 'cross Claims' 'impecuniosity']
['practice and Procedure' 'costs' 'corporations'] ['security for Costs' 'quantum of Security' 'cross Claims' 'impecuniosity']

Case Brief

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Procedural Posture

Interlocutory Application for Security for Costs / Judgment on Application for Security for Costs

Legal Issues

  1. 1 ['Whether security for costs should be ordered in the primary claim and the second cross-claim.' 'What quantum of security for costs should be ordered.']

Ratio Decidendi

Security for costs was ordered against Capitalcorp in the primary proceeding because, in light of indications that it was not trading, unanswered requests for financial information, securities over its assets, delay in prosecuting the proceeding, and its failure to adduce evidence about trading and pecuniosity, there were serious questions about its ability to pay a costs order. No security was ordered in respect of the second cross-claim because the Court generally accepted Capitalcorp's submissions about that claim. Quantum was fixed by a broad brush assessment at one third of the estimated future costs, being $56,500.

Court Disposition

Application for security for costs granted in part.

Orders

  • ["The applicant in the proceeding give security for the payment of the respondent's costs in defending this proceeding in the sum of $56,500 within 21 days." "The applicant in the proceeding pay the respondent's costs of and incidental to this application, to be taxed if not agreed."]