LRSM Enterprise Pty Ltd v Zurich Australia Insurance Ltd [2013] NSWSC 324

LRSM Enterprise Pty Ltd v Zurich Australia Insurance Ltd [2013] NSWSC 324

Security for costs was ordered as the plaintiff, a corporation, could not meet an adverse costs order and those who stood behind the plaintiff and would benefit were unwilling, not unable, to provide security. Delay in making the application did not outweigh the considerations in favour of granting security since any presumed prejudice was not established sufficiently. There was also evidence that the plaintiff's claim may not be bona fide. The amount of $233,000 security was reasonable in the circumstances.

Jurisdiction
Australia
Judgment Date
10 April 2013
Procedural Posture
Interlocutory Application / Hearing and Determination of Security for Costs Motion
Outcome
Security for costs ordered; proceedings stayed pending provision of security; costs of motion to defendant/applicant.
Legal Topics
['security for Costs' 'interlocutory Applications' 'delay' 'corporate Litigants' 'impecuniosity' 'litigation Funding']
['civil Procedure'] ['security for Costs' 'interlocutory Applications' 'delay' 'corporate Litigants' 'impecuniosity' 'litigation Funding']

Case Brief

Summary, issues, holding and outcome

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Procedural Posture

Interlocutory Application / Hearing and Determination of Security for Costs Motion

Legal Issues

  1. 1 ['Whether security for costs should be ordered against the plaintiff' 'Whether delay disentitles the defendant to security' 'Whether order for security would stultify proceedings' 'Whether claim made in good faith' 'Whether impecuniosity caused by the defendant']

Ratio Decidendi

Security for costs was ordered as the plaintiff, a corporation, could not meet an adverse costs order and those who stood behind the plaintiff and would benefit were unwilling, not unable, to provide security. Delay in making the application did not outweigh the considerations in favour of granting security since any presumed prejudice was not established sufficiently. There was also evidence that the plaintiff's claim may not be bona fide. The amount of $233,000 security was reasonable in the circumstances.

Court Disposition

Security for costs ordered; proceedings stayed pending provision of security; costs of motion to defendant/applicant.

Orders

  • ['That within 14 days of the order (9 April 2013), the plaintiff provide security for costs by payment of $233,000 to the Registrar of the Supreme Court (Common Law Division) or as agreed between the parties.' 'That the proceedings be stayed until security is provided.' "That the plaintiff/respondent pay the...