H & M Constructions (NSW) Pty Ltd v Golden Rain Development Pty Ltd [2021] NSWSC 708

The plaintiff is not, in substance, a defendant in the proceedings as it seeks substantive relief for breach of contract and unconscionable conduct. Security for costs is ordered up to mediation, with provision for adjustment if a cross-claim is brought.

Parties: Plaintiff/respondent: H & M Constructions (NSW) Pty Ltd; Defendant/applicant: Golden Rain Development Pty Ltd
Jurisdiction: Australia
Judgment Date: 16 June 2021
Procedural Posture: Security for Costs Application / Interlocutory
Outcome: Application for security for costs granted in part.
Legal Topics: Security for Costs, Mediation, Unconscionable Conduct, Breach of Contract

Equity Construction Law Civil Procedure Security for Costs Mediation Unconscionable Conduct Breach of Contract

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Parties

H & M Constructions (NSW) Pty Ltd

Plaintiff/respondent

Golden Rain Development Pty Ltd

Defendant/applicant

Procedural Posture

Security for Costs Application / Interlocutory

Legal Issues

1 Whether the plaintiff should provide security for costs and in what amount
2 Whether the plaintiff's claim is 'defensive' in nature affecting entitlement to security for costs
3 Effect of potential cross-claim on security for costs orders

Ratio Decidendi

Court Disposition

Application for security for costs granted in part.

Orders

The plaintiff provides security in the sum of $350,000 in respect of the costs of the defendant up to and including the mediation referred to in the Court's orders of 25 May 2021.
If the plaintiff fails to pay such security within 14 days of these orders, the proceedings be stayed until the relevant security is provided.