Vintage Marine Art Pty Ltd v Henderson [2019] NSWSC 590

Vintage Marine Art Pty Ltd v Henderson [2019] NSWSC 590

The Court ordered the plaintiff to provide further security for costs of $40,000, holding that although the plaintiff and its directors are impecunious, the evidence did not establish that an order in this amount would stifle the proceedings. Two thirds of the estimated future costs was fixed as a proportionate security sum.

Parties
Plaintiff/respondent: Vintage Marine Art Pty Ltd; First Defendant/first Applicant: Robert Craig Henderson; Second Defendant/second Applicant: Douglas Cremer
Jurisdiction
Australia
Judgment Date
20 May 2019
Procedural Posture
Security for Costs Application in Civil Proceedings / Interlocutory Decision/order
Outcome
Security for costs ordered; proceedings stayed pending provision of security; consequential orders made as to filing and costs.
Legal Topics
Security for Costs, Impecuniosity, Corporate Litigation
Civil Procedure Security for Costs Impecuniosity Corporate Litigation

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Parties

Vintage Marine Art Pty Ltd

Plaintiff/respondent

Robert Craig Henderson

First Defendant/first Applicant

Douglas Cremer

Second Defendant/second Applicant

Procedural Posture

Security for Costs Application in Civil Proceedings / Interlocutory Decision/order

Legal Issues

  1. 1 Whether further security for costs should be ordered against a corporate plaintiff
  2. 2 Whether ordering security would stifle proceedings due to directors' impecuniosity

Ratio Decidendi

The Court ordered the plaintiff to provide further security for costs of $40,000, holding that although the plaintiff and its directors are impecunious, the evidence did not establish that an order in this amount would stifle the proceedings. Two thirds of the estimated future costs was fixed as a proportionate security sum.

Court Disposition

Security for costs ordered; proceedings stayed pending provision of security; consequential orders made as to filing and costs.

Orders

  • The plaintiff to file and serve a notice of appearance within two months.
  • Plaintiff to provide security for defendants’ costs in the amount of $40,000 pursuant to the Uniform Civil Procedure Rules, Part 42.21.