Bell Wholesale Co Pty Ltd v Gates Export Corp & Ors [1983] FCA 342

Bell Wholesale Co Pty Ltd v Gates Export Corp & Ors [1983] FCA 342

The applicant is a corporate trustee with no assets and a stayed judgment debt; there is reason to believe it cannot pay the respondent's costs if unsuccessful. Security for costs should be ordered under s.533(1) of the Companies (Queensland) Code, which applies in the Federal Court. The beneficiaries can fund the litigation and the risk they bear is ordinary for users of court process. Court's discretion exercised in favour of security; $10,000 fixed.

Jurisdiction
Australia
Judgment Date
11 November 1983
Procedural Posture
Application for Security for Costs / Interlocutory Hearing
Outcome
Security for costs ordered in favour of first respondent; applicant to pay costs of the application.
Legal Topics
['security for Costs' 'corporate Trustee' 'federal Court Procedure']
['practice and Procedure' 'corporations Law'] ['security for Costs' 'corporate Trustee' 'federal Court Procedure']

Case Brief

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Procedural Posture

Application for Security for Costs / Interlocutory Hearing

Legal Issues

  1. 1 ['Whether security for costs should be ordered against a corporate trustee applicant' 'Applicability of Companies (Queensland) Code s.533(1) in Federal Court proceedings' 'Applicability of Federal Court Rules 0.28 r.3(1)(b)']

Ratio Decidendi

The applicant is a corporate trustee with no assets and a stayed judgment debt; there is reason to believe it cannot pay the respondent's costs if unsuccessful. Security for costs should be ordered under s.533(1) of the Companies (Queensland) Code, which applies in the Federal Court. The beneficiaries can fund the litigation and the risk they bear is ordinary for users of court process. Court's discretion exercised in favour of security; $10,000 fixed.

Court Disposition

Security for costs ordered in favour of first respondent; applicant to pay costs of the application.

Orders

  • ["Applicant to give security in the amount of $10,000 for the first respondent's costs of and incidental to proceedings, including costs of the present application, in a form to be agreed or determined by the Court." "Applicant to pay the first respondent's costs of and incidental to the application for security for...