The Blue Shop Pty Ltd v Hereweare Pty Ltd [2016] NSWSC 1930

The Blue Shop Pty Ltd v Hereweare Pty Ltd [2016] NSWSC 1930

An order for security for costs should be made against the plaintiff, as the threshold for impecuniosity was met but the plaintiff did not demonstrate that the shareholders were unable, rather than unwilling, to provide security; and the evidence did not establish that the impecuniosity was caused by the defendants.

Jurisdiction
Australia
Judgment Date
21 November 2016
Procedural Posture
Security for Costs Application and Procedural Orders / Interlocutory Application
Outcome
Application for security for costs granted; proceedings stayed unless security provided
Legal Topics
['security for Costs' 'company Law' 'negligence' 'sale of Business' 'commercial Leasing']
['civil Procedure' 'equity'] ['security for Costs' 'company Law' 'negligence' 'sale of Business' 'commercial Leasing']

Case Brief

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Procedural Posture

Security for Costs Application and Procedural Orders / Interlocutory Application

Legal Issues

  1. 1 ['Whether security for costs should be ordered against the plaintiff company' "Whether the plaintiff's impecuniosity was caused by the defendants' conduct" 'Whether ordering security would stultify proceedings' 'If security is ordered, the appropriate quantum and form of security']

Ratio Decidendi

An order for security for costs should be made against the plaintiff, as the threshold for impecuniosity was met but the plaintiff did not demonstrate that the shareholders were unable, rather than unwilling, to provide security; and the evidence did not establish that the impecuniosity was caused by the defendants.

Court Disposition

Application for security for costs granted; proceedings stayed unless security provided

Orders

  • ["Proceedings stayed as against all defendants unless within 7 days the plaintiff provides security for costs via a joint and several personal guarantee from each shareholder in the sums of $35,000 for the first to third defendants' costs and $22,000 for the fourth defendant's costs for costs up to 21 February...