Tucker, Megan Jane & Ors v Hargreaves, Paul Richard [1998] FCA 1272

Tucker, Megan Jane & Ors v Hargreaves, Paul Richard [1998] FCA 1272

Jurisdiction to order security for costs was enlivened as the third applicant’s ability to pay the fourth respondent’s costs depended on a contingency (setting aside the charge), but making the order was not appropriate because the motion only targeted the third applicant and not the natural person co-applicants, who were entitled to pursue similar claims. The fourth respondent, as a partner, was not liable for alleged misconduct done by the first respondent in a personal capacity and not in the ordinary course of the partnership’s business.

Jurisdiction
Australia
Judgment Date
09 October 1998
Procedural Posture
Interlocutory Application / Motion for Security for Costs
Outcome
Motion for security for costs dismissed.
Legal Topics
['security for Costs' 'liability of Partners' 'impecunious Corporate Plaintiffs' 'fiduciary Duties of Solicitors' 'conduct in Ordinary Course of Partnership Business']

Case Brief

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Procedural Posture

Interlocutory Application / Motion for Security for Costs

  1. 1 ['Whether the impecunious corporate applicant should be ordered to provide security for costs under s 1335 of the Corporations Law.' 'Whether the fourth respondent (innocent partner) is liable for the alleged misconduct of the first respondent (partner) under the Partnership Act 1892 (NSW).']

Ratio Decidendi

Jurisdiction to order security for costs was enlivened as the third applicant’s ability to pay the fourth respondent’s costs depended on a contingency (setting aside the charge), but making the order was not appropriate because the motion only targeted the third applicant and not the natural person co-applicants, who were entitled to pursue similar claims. The fourth respondent, as a partner, was not liable for alleged misconduct done by the first respondent in a personal capacity and not in the ordinary course of the partnership’s business.

Court Disposition

Motion for security for costs dismissed.

Orders

  • ['The motion filed 16 April 1998 be dismissed.' "The costs will be the third applicant's costs in the proceeding against the fourth respondent."]