In the matter of Classic Corporation Pty Limited [2016] NSWSC 1974

In the matter of Classic Corporation Pty Limited [2016] NSWSC 1974

The plaintiffs conceded that the threshold for an order for security under Corporations Act s 1335 was met. No discretionary factor sufficiently weighed against granting the order, especially given plaintiffs' admitted impecuniosity, no evidence of stultification, and unwillingness of those standing behind plaintiffs to provide security. Quantum assessed reasonably at $90,000.

Jurisdiction
Australia
Judgment Date
14 March 2016
Procedural Posture
Interlocutory Application / Security for Costs Decision
Outcome
Order for security for costs granted
Legal Topics
['security for Costs' 'costs' 'discretionary Factors' 'mortgage Priority']
['civil Procedure' 'corporations'] ['security for Costs' 'costs' 'discretionary Factors' 'mortgage Priority']

Case Brief

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Procedural Posture

Interlocutory Application / Security for Costs Decision

Legal Issues

  1. 1 ["Whether plaintiffs should be ordered to give security for fourth and fifth defendants' costs" 'Relevant discretionary factors in ordering security for costs' 'Quantum of security for costs']

Ratio Decidendi

The plaintiffs conceded that the threshold for an order for security under Corporations Act s 1335 was met. No discretionary factor sufficiently weighed against granting the order, especially given plaintiffs' admitted impecuniosity, no evidence of stultification, and unwillingness of those standing behind plaintiffs to provide security. Quantum assessed reasonably at $90,000.

Court Disposition

Order for security for costs granted

Orders

  • ["Plaintiffs to give security for fourth and fifth defendants' costs in the sum of $90,000 in form acceptable to Registrar within 28 days" 'Proceedings stayed unless and until security is given' 'Proceedings be adjourned to 18 April 2016 at 10am for further directions' "Plaintiffs to pay defendants' costs of...