Capital Webworks Pty Ltd v Adultshop.com.Limited [2008] FCA 40

Capital Webworks Pty Ltd v Adultshop.com.Limited [2008] FCA 40

There had been some material change since the 2003 security order, principally increased legal and counsel fees and the effect of the longer period over which Adultshop operated the business on the trial exercise. However, Adultshop overstated the significance of some factors, and the Court's balancing exercise did not permit a complete indemnity. Appropriate protection was achieved by requiring Capital to provide further security of $68,000 by payment into Court within 21 days.

Jurisdiction
Australia
Judgment Date
30 January 2008
Procedural Posture
Application for Further Security for Costs / Interlocutory Motion to Vary an Earlier Security for Costs Order Before Trial
Outcome
Adultshop's motion to vary the security for costs order was granted in part.
Legal Topics
['security for Costs' 'variation of Security for Costs Order' 'material Change in Circumstances' 'impecunious Corporate Applicant']
['civil Procedure' 'costs'] ['security for Costs' 'variation of Security for Costs Order' 'material Change in Circumstances' 'impecunious Corporate Applicant']

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Procedural Posture

Application for Further Security for Costs / Interlocutory Motion to Vary an Earlier Security for Costs Order Before Trial

Legal Issues

  1. 1 ['Whether there had been a material change in circumstances since security for costs was previously ordered in 2003.' 'Whether Adultshop should receive further security for costs and, if so, in what amount.' "Whether the balancing exercise precluded a complete indemnity for Adultshop's anticipated costs."]

Ratio Decidendi

There had been some material change since the 2003 security order, principally increased legal and counsel fees and the effect of the longer period over which Adultshop operated the business on the trial exercise. However, Adultshop overstated the significance of some factors, and the Court's balancing exercise did not permit a complete indemnity. Appropriate protection was achieved by requiring Capital to provide further security of $68,000 by payment into Court within 21 days.

Court Disposition

Adultshop's motion to vary the security for costs order was granted in part.

Orders

  • ["Within 21 days, Capital provide further security for Adultshop's costs up to and including completion of the trial in the amount of $68,000 by way of payment into Court."]