Business Sampler (WA) Pty Ltd v Morgan, Janette Lynn & Anor [1996] FCA 178

Business Sampler (WA) Pty Ltd v Morgan, Janette Lynn & Anor [1996] FCA 178

The respondent failed to provide credible testimony or evidence capable of supporting a belief that the first applicant would be unable to pay costs; the misstatement of address was made without intent to deceive and was a mere formality. There was no basis for exercising the power to order security for costs against either applicant.

Parties
First Applicant: Business Sampler (WA) Pty Ltd; Second Applicant: Janette Lynn Morgan; Respondent: Brocorp Pty Ltd
Jurisdiction
Australia
Judgment Date
18 March 1996
Procedural Posture
Application (security for Costs) / Interlocutory Application
Outcome
application for security for costs dismissed with costs
Legal Topics
Security for Costs, Misstatement of Address, Costs Orders
Corporations Law Civil Procedure Security for Costs Misstatement of Address Costs Orders

Case Brief

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Parties

Business Sampler (WA) Pty Ltd

First Applicant

Janette Lynn Morgan

Second Applicant

Brocorp Pty Ltd

Respondent

Procedural Posture

Application (security for Costs) / Interlocutory Application

Legal Issues

  1. 1 Whether the respondent is entitled to an order for security for costs against the applicants under Order 28 of the Federal Court Rules and s 1335 of the Corporations Law
  2. 2 Whether the address of the first applicant was misstated and if so, whether it was with intent to deceive
  3. 3 Whether credible testimony shows the first applicant is unlikely to be able to pay costs

Ratio Decidendi

The respondent failed to provide credible testimony or evidence capable of supporting a belief that the first applicant would be unable to pay costs; the misstatement of address was made without intent to deceive and was a mere formality. There was no basis for exercising the power to order security for costs against either applicant.

Court Disposition

application for security for costs dismissed with costs

Orders

  • The application for security for costs is dismissed with costs.