Green Camel Pty Ltd v Urban Ecological Systems Ltd [2017] NSWSC 362

Green Camel Pty Ltd v Urban Ecological Systems Ltd [2017] NSWSC 362

The court ordered security for costs be provided by UESL because there is a rational basis to believe UESL may be unable to pay costs if ordered, and discretionary factors including UESL’s financial position, the non-defensive nature of the cross-claim, and anticipated extra costs favour granting security. The amount is set on evidence distinguishing costs up to trial, to be provided by acceptable bank guarantee.

Jurisdiction
Australia
Judgment Date
07 April 2017
Procedural Posture
Equity – Application for Security for Costs / Interlocutory Application – Ruling on Notice of Motion for Security for Costs
Outcome
Security for costs ordered in favour of Green Camel Pty Ltd against Urban Ecological Systems Ltd; additional interlocutory orders made
Legal Topics
['security for Costs' 'cross Claims' 'breach of Contract' 'misleading or Deceptive Conduct']
['equity' 'civil Procedure'] ['security for Costs' 'cross Claims' 'breach of Contract' 'misleading or Deceptive Conduct']

Case Brief

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Procedural Posture

Equity – Application for Security for Costs / Interlocutory Application – Ruling on Notice of Motion for Security for Costs

Legal Issues

  1. 1 ["Whether Urban Ecological Systems Limited should be ordered to provide security for Green Camel's costs of the cross-claim under s 1335(1) Corporations Act or r 42.21(1) Uniform Civil Procedure Rules (NSW)" 'Whether threshold for risk of inability to pay is met by UESL' 'What discretionary factors (including nature of the cross-claim, financial position, and overlap of issues) affect the grant and quantum of security']

Ratio Decidendi

The court ordered security for costs be provided by UESL because there is a rational basis to believe UESL may be unable to pay costs if ordered, and discretionary factors including UESL’s financial position, the non-defensive nature of the cross-claim, and anticipated extra costs favour granting security. The amount is set on evidence distinguishing costs up to trial, to be provided by acceptable bank guarantee.

Court Disposition

Security for costs ordered in favour of Green Camel Pty Ltd against Urban Ecological Systems Ltd; additional interlocutory orders made

Orders

  • ["UESL to provide within 28 days security for Green Camel's costs of and incidental to the cross-claim up to the completion of its evidence and commencement of the trial in the amount of $126,007.70, by way of unconditional bank guarantee acceptable to Green Camel." 'If security not provided as ordered, proceedings...