Frigger, in the matter of Computer Accounting & Tax Pty Ltd (in Liq) (No 2) [2018] FCA 612

Frigger, in the matter of Computer Accounting & Tax Pty Ltd (in Liq) (No 2) [2018] FCA 612

An order for security for costs should be made against the plaintiffs in the amount of $30,000, in light of substantial history of unpaid costs orders, questionable enforceability of personal assets for costs, propensity for repeated unsuccessful litigation, and evidence of putting assets out of reach, as these constitute 'additional factors' warranting security against natural person plaintiffs, without risk of stultifying proceedings due to their access to funds.

Parties
First Plaintiff: Angela Cecilia Theresa Frigger; Second Plaintiff: Hartmut Hubert Josef Frigger; Other: Mervyn Jonathan Kitay, Liquidator of Computer Accounting & Tax Pty Ltd (in liq)
Jurisdiction
Australia
Judgment Date
07 May 2018
Procedural Posture
Application for Security for Costs / Interlocutory Order
Outcome
Application for security for costs granted.
Legal Topics
Security for Costs, Bankruptcy, Liquidator's Duties, Costs Claims
Practice and Procedure Corporations Law Insolvency Security for Costs Bankruptcy Liquidator's Duties Costs Claims

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Parties

Angela Cecilia Theresa Frigger

First Plaintiff

Hartmut Hubert Josef Frigger

Second Plaintiff

Mervyn Jonathan Kitay, Liquidator of Computer Accounting & Tax Pty Ltd (in liq)

Other

Procedural Posture

Application for Security for Costs / Interlocutory Order

Legal Issues

  1. 1 Whether the Court should order security for costs against natural persons as plaintiffs
  2. 2 Whether assets in self-managed superannuation fund are accessible for costs enforcement
  3. 3 Whether prior history of unpaid costs orders and litigation supports the security for costs application

Ratio Decidendi

An order for security for costs should be made against the plaintiffs in the amount of $30,000, in light of substantial history of unpaid costs orders, questionable enforceability of personal assets for costs, propensity for repeated unsuccessful litigation, and evidence of putting assets out of reach, as these constitute 'additional factors' warranting security against natural person plaintiffs, without risk of stultifying proceedings due to their access to funds.

Court Disposition

Application for security for costs granted.

Orders

  • The plaintiffs do by 21 May 2018 pay the sum of $30,000 as security for costs by unconditional bank guarantee or otherwise to satisfaction of a Registrar.
  • The proceedings by the plaintiffs be stayed until provision of that security or further order of the Court.