Cheng XI Shipyard v The Ship 'Falcon Trident' [2006] FCA 759

Cheng XI Shipyard v The Ship 'Falcon Trident' [2006] FCA 759

Despite the apparent strength of the plaintiff's case, the plaintiff being ordinarily resident outside Australia and having no assets within the jurisdiction is sufficient to justify an order for security for costs.

Jurisdiction
Australia
Judgment Date
19 June 2006
Procedural Posture
Application for Security for Costs / Interlocutory (before Trial)
Outcome
Security for costs order made; proceedings stayed pending provision of security.
Legal Topics
['security for Costs' 'jurisdiction' 'stay of Proceedings']

Case Brief

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Procedural Posture

Application for Security for Costs / Interlocutory (before Trial)

  1. 1 ['Whether the plaintiff should be ordered to give security for costs under s 56 of the Federal Court Act 1976 (Cth)']

Ratio Decidendi

Despite the apparent strength of the plaintiff's case, the plaintiff being ordinarily resident outside Australia and having no assets within the jurisdiction is sufficient to justify an order for security for costs.

Court Disposition

Security for costs order made; proceedings stayed pending provision of security.

Orders

  • ['The plaintiff give security in a form satisfactory to the Registrar for the payment of costs that may be awarded against it in the sum of $65,000.' 'Pending the provision of security, this proceeding be stayed.']