Auslink Golf Course Pty Limited v Zhongsheng Group Pty Ltd [2023] FCA 397

Auslink Golf Course Pty Limited v Zhongsheng Group Pty Ltd [2023] FCA 397

Both Auslink Golf Course Pty Limited and Zhongsheng Group Pty Ltd (and its parties) were ordered to provide security for costs as credible testimony established reason to believe they would be unable to pay adverse costs orders if unsuccessful, and relevant discretionary factors did not outweigh this risk, considering financial position, residence outside Australia, lack of assets, and absence of undertaken by persons standing behind the companies.

Jurisdiction
Australia
Judgment Date
03 May 2023
Procedural Posture
Interlocutory Applications for Security for Costs in Related Civil Proceedings / Ruling on Interlocutory Applications for Security for Costs
Outcome
Applications for security for costs granted in both proceedings.
Legal Topics
['security for Costs' 'oppression Proceedings' 'fiduciary Duties' 'misleading or Deceptive Conduct' 'impecuniosity' 'cross Claim Related Proceedings']
['practice and Procedure' 'corporations Law' 'commercial Law'] ['security for Costs' 'oppression Proceedings' 'fiduciary Duties' 'misleading or Deceptive Conduct' 'impecuniosity' 'cross Claim Related Proceedings']

Case Brief

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Procedural Posture

Interlocutory Applications for Security for Costs in Related Civil Proceedings / Ruling on Interlocutory Applications for Security for Costs

Legal Issues

  1. 1 ['Whether applicants or plaintiffs should be ordered to provide security for costs' 'Assessment of threshold under s 1335 Corporations Act and discretionary factors for security' 'Impact of overlap and relation between two proceedings' 'Significance of foreign residence and absence of assets in jurisdiction']

Ratio Decidendi

Both Auslink Golf Course Pty Limited and Zhongsheng Group Pty Ltd (and its parties) were ordered to provide security for costs as credible testimony established reason to believe they would be unable to pay adverse costs orders if unsuccessful, and relevant discretionary factors did not outweigh this risk, considering financial position, residence outside Australia, lack of assets, and absence of undertaken by persons standing behind the companies.

Court Disposition

Applications for security for costs granted in both proceedings.

Orders

  • ['Auslink Golf Course Pty Limited to provide security for costs: $100,000 within 28 days; $340,000 after mediation or before hearing. Security by payment into Court or unconditional bank guarantee.' 'Proceeding against first, third, and fourth defendants stayed if security not provided.' 'Auslink Golf Course Pty...