Allied Environmental Solutions Pty Ltd v North Burnett Regional Council [2016] FCA 713

Allied Environmental Solutions Pty Ltd v North Burnett Regional Council [2016] FCA 713

There is credible evidence that Allied Environmental Solutions Pty Ltd may be unable to pay the respondent's costs if unsuccessful. The applicant’s arguments regarding ability to pay and stultification were not substantiated by the evidence, and no sufficient basis was shown to withhold an order for security for costs. The Court therefore exercised its discretion to order security for costs in the amount of $105,000.

Parties
Applicant: Allied Environmental Solutions Pty Ltd; Respondent: North Burnett Regional Council
Jurisdiction
Australia
Judgment Date
16 June 2016
Procedural Posture
Application / Interlocutory Judgment on Application for Security for Costs
Outcome
Security for costs ordered
Legal Topics
Security for Costs, Contractual Damages, Australian Consumer Law, Impecuniosity, Stultification of Proceedings
Practice and Procedure Commercial Law Corporations Law Security for Costs Contractual Damages Australian Consumer Law Impecuniosity Stultification of Proceedings

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Parties

Allied Environmental Solutions Pty Ltd

Applicant

North Burnett Regional Council

Respondent

Procedural Posture

Application / Interlocutory Judgment on Application for Security for Costs

Legal Issues

  1. 1 Whether the applicant should be ordered to provide security for costs
  2. 2 Whether applicant could satisfy an adverse costs order
  3. 3 Whether applicant's impecuniosity was caused by respondent's conduct

Ratio Decidendi

There is credible evidence that Allied Environmental Solutions Pty Ltd may be unable to pay the respondent's costs if unsuccessful. The applicant’s arguments regarding ability to pay and stultification were not substantiated by the evidence, and no sufficient basis was shown to withhold an order for security for costs. The Court therefore exercised its discretion to order security for costs in the amount of $105,000.

Court Disposition

Security for costs ordered

Orders

  • The applicant provide security for the respondent's costs in the sum of $105,000 by bank guarantee in a form acceptable to the Registrar on or before 15 July 2016.
  • The proceedings be stayed in the event of non-compliance with order 1 until such time as the security is provided.