Massey Trading Pty Ltd v Intoto Pty Ltd [2001] FCA 1242

Massey Trading Pty Ltd v Intoto Pty Ltd [2001] FCA 1242

It is appropriate to order further security for costs against Massey Trading Pty Limited, as no material change in its financial status exists and its cause of action is principal; Mr and Mrs Dowse have access to substantial superannuation funds for litigation but are not personally impecunious, and the principal claim can be separated from their cause of action. Security for costs relieves the prima facie unfairness to the respondents.

Jurisdiction
Australia
Judgment Date
04 September 2001
Procedural Posture
Application for Security for Costs / Post Interlocutory; Further Order and Reasoning on Security for Costs
Outcome
Order for security for costs granted against the first applicant; liberty to apply reserved; no order as to costs for present application.
Legal Topics
['security for Costs' 'financial Circumstances' 'corporate Insolvency' 'superannuation Funds' 'order for Security']
['practice and Procedure'] ['security for Costs' 'financial Circumstances' 'corporate Insolvency' 'superannuation Funds' 'order for Security']

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Procedural Posture

Application for Security for Costs / Post Interlocutory; Further Order and Reasoning on Security for Costs

Legal Issues

  1. 1 ['Whether security for costs should be ordered against the applicants due to their financial circumstances' 'Whether the second applicants (Mr and Mrs Dowse) who stand behind the first applicant are without means and will benefit from the litigation' 'Whether prima facie unfairness to respondents can be relieved by an order for security']

Ratio Decidendi

It is appropriate to order further security for costs against Massey Trading Pty Limited, as no material change in its financial status exists and its cause of action is principal; Mr and Mrs Dowse have access to substantial superannuation funds for litigation but are not personally impecunious, and the principal claim can be separated from their cause of action. Security for costs relieves the prima facie unfairness to the respondents.

Court Disposition

Order for security for costs granted against the first applicant; liberty to apply reserved; no order as to costs for present application.

Orders

  • ['Unless on or before 11 September 2001, the First Applicant provides further security for the costs of the First to Fifth Respondents in the further sum of $25,000.00, in a form satisfactory to the Registrar, the principal proceedings be stayed.' "Liberty to apply to the Applicants and to the First to Fifth...