Chartspike Pty Ltd v Chahoud [2001] NSWSC 585

Chartspike Pty Ltd v Chahoud [2001] NSWSC 585

Because the plaintiff was insolvent and in liquidation, and the funding agreement allowed termination and did not give the defendant adequate protection against adverse costs, security for costs should be ordered in the sum of $60,000 with liberty to seek an increase as the hearing approached.

Jurisdiction
Australia
Judgment Date
03 July 2001
Procedural Posture
Application for Security for Costs in an Action in the Professional Negligence List / Interlocutory Application
Outcome
Order for security for costs made.
Legal Topics
['security for Costs' 'insolvent Company in Liquidation' 'third Party Litigation Funding' 'adverse Costs Orders']
['corporations' 'civil Procedure' 'professional Negligence'] ['security for Costs' 'insolvent Company in Liquidation' 'third Party Litigation Funding' 'adverse Costs Orders']

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Procedural Posture

Application for Security for Costs in an Action in the Professional Negligence List / Interlocutory Application

Legal Issues

  1. 1 ["Whether an insolvent plaintiff company in liquidation should provide security for the defendant's costs." "Whether the liquidator's third-party funding arrangement and indemnity gave adequate protection to the defendant against adverse costs."]

Ratio Decidendi

Because the plaintiff was insolvent and in liquidation, and the funding agreement allowed termination and did not give the defendant adequate protection against adverse costs, security for costs should be ordered in the sum of $60,000 with liberty to seek an increase as the hearing approached.

Court Disposition

Order for security for costs made.

Orders

  • ['The plaintiff provide security for costs to the defendant in the sum of $60,000.' "Such security may be made by bank guarantee or in such other form as is acceptable to the defendant's solicitors or to a Registrar." 'If that security is not provided by 3 August 2001 then the proceedings are stayed.' 'The plaintiff...