Aligned Investment Management v Aligned FM [2018] NSWSC 1852

Aligned Investment Management v Aligned FM [2018] NSWSC 1852

Although the jurisdiction to order security for costs was enlivened, it was inappropriate to exercise it in favour of the applicant given the overlap of claims and cross-claims, the limited practical effect of any order, and the real interest in the dispute being between shareholders rather than the company itself.

Parties
Plaintiff/respondent: Aligned Investment Management Pty Ltd; First Defendant/applicant: Aligned FM Pty Ltd; Second Defendant: Boultwood Ho Investments
Jurisdiction
Australia
Judgment Date
30 November 2018
Procedural Posture
Security for Costs Application / Interlocutory Decision
Outcome
Application dismissed
Legal Topics
Security for Costs, Trustee Indemnity, Shareholder Disputes, Oppression Proceedings
Civil Procedure Equity Commercial Security for Costs Trustee Indemnity Shareholder Disputes Oppression Proceedings

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Parties

Aligned Investment Management Pty Ltd

Plaintiff/respondent

Aligned FM Pty Ltd

First Defendant/applicant

Boultwood Ho Investments

Second Defendant

Procedural Posture

Security for Costs Application / Interlocutory Decision

Legal Issues

  1. 1 Whether the court's jurisdiction to order security for costs is enlivened when the plaintiff's sole asset is its right of indemnity as trustee
  2. 2 Whether discretion to order security for costs should be exercised given the existence of cross-claims and the nature of the parties' interests

Ratio Decidendi

Although the jurisdiction to order security for costs was enlivened, it was inappropriate to exercise it in favour of the applicant given the overlap of claims and cross-claims, the limited practical effect of any order, and the real interest in the dispute being between shareholders rather than the company itself.

Court Disposition

Application dismissed

Orders

  • The first defendant's notice of motion for security for costs is dismissed.
  • The applicant to pay the respondent's costs of the notice of motion.