Nature’s Care Holdings Pty Ltd v Chen (No 4) [2024] NSWSC 379

Nature’s Care Holdings Pty Ltd v Chen (No 4) [2024] NSWSC 379

JIC Nature Capital Pte Ltd and Tamar Alliance Health Ltd, as majority shareholders and third parties, exercised control and vital interest in commencing and conducting the litigation for their own purposes. Plaintiffs are insolvent, and the interests of justice require a joint and several third party costs order, assessed and payable forthwith, subject to an undertaking protecting plaintiffs’ interests if subsequent orders alter the costs liability.

Jurisdiction
Australia
Judgment Date
11 April 2024
Procedural Posture
Interlocutory Application / Costs Determination Following Dismissal of Application for Interim Injunction
Outcome
Third party costs order made: plaintiffs and majority shareholders liable jointly and severally; costs payable forthwith subject to undertaking from Wu Parties.
Legal Topics
['third Party Costs Orders' 'interlocutory Injunctions' 'joint and Several Liability for Costs' 'costs Payable Forthwith']
['equity' 'commercial Law'] ['third Party Costs Orders' 'interlocutory Injunctions' 'joint and Several Liability for Costs' 'costs Payable Forthwith']

Case Brief

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Procedural Posture

Interlocutory Application / Costs Determination Following Dismissal of Application for Interim Injunction

Legal Issues

  1. 1 ['Should majority shareholders (third parties) be jointly and severally liable with plaintiff companies for costs of unsuccessful interim injunction application?' 'Should costs be assessed and payable forthwith?' "Do 'exceptional circumstances' justify a third party costs order?"]

Ratio Decidendi

JIC Nature Capital Pte Ltd and Tamar Alliance Health Ltd, as majority shareholders and third parties, exercised control and vital interest in commencing and conducting the litigation for their own purposes. Plaintiffs are insolvent, and the interests of justice require a joint and several third party costs order, assessed and payable forthwith, subject to an undertaking protecting plaintiffs’ interests if subsequent orders alter the costs liability.

Court Disposition

Third party costs order made: plaintiffs and majority shareholders liable jointly and severally; costs payable forthwith subject to undertaking from Wu Parties.

Orders

  • ['JIC Nature Capital Pte Ltd and Tamar Alliance Health Ltd, as majority shareholders, are jointly and severally liable with the plaintiffs for the costs of the unsuccessful application for a continuation of the interlocutory injunction.' 'Such costs are to be assessed and payable forthwith, subject to the first and...