Deangrove Pty Ltd v Commonwealth Bank of Australia [2002] FCA 1545

Deangrove Pty Ltd v Commonwealth Bank of Australia [2002] FCA 1545

The applicants, and in particular Mr Jeans, have repeatedly failed to comply with court orders to provide security for costs. This non-compliance threatens the interests of the debenture holder and prejudices the respondent. The court, applying Federal Court Rules O 10 r 7 and having regard to previous decisions, determined that unless the required security is provided by the extended deadline, the proceedings should be dismissed with costs, to prevent further proceedings on the same causes.

Parties
First Applicant: Deangrove Pty Limited (Receivers and Managers Appointed); Second Applicant: John Anthony Jeans; Respondent: Commonwealth Bank of Australia; Cross Claimant: Commonwealth Bank of Australia; First Cross Respondent: Deangrove Pty Limited (Receivers and Managers Appointed); Second Cross Respondent: John Anthony Jeans; Third Cross Respondent: John Richard Bruce
Jurisdiction
Australia
Judgment Date
11 December 2002
Procedural Posture
Civil / Interlocutory, Compliance With Court Orders/pre Trial
Outcome
Conditional extension of time to comply granted; proceedings to be dismissed with costs and with a preclusion order if non-compliance continues.
Legal Topics
Security for Costs, Failure to Comply With Court Orders, Company in Receivership Litigation
Civil Procedure Insolvency Banking and Finance Security for Costs Failure to Comply With Court Orders Company in Receivership Litigation

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Parties

Deangrove Pty Limited (Receivers and Managers Appointed)

First Applicant

John Anthony Jeans

Second Applicant

Commonwealth Bank of Australia

Respondent

Commonwealth Bank of Australia

Cross Claimant

Deangrove Pty Limited (Receivers and Managers Appointed)

First Cross Respondent

John Anthony Jeans

Second Cross Respondent

John Richard Bruce

Third Cross Respondent

Procedural Posture

Civil / Interlocutory, Compliance With Court Orders/pre Trial

Legal Issues

  1. 1 Should the proceedings be dismissed or stayed due to the applicants' failure to comply with an order to provide security for costs?
  2. 2 What is the consequence of the applicants' repeated non-compliance with court orders?

Ratio Decidendi

The applicants, and in particular Mr Jeans, have repeatedly failed to comply with court orders to provide security for costs. This non-compliance threatens the interests of the debenture holder and prejudices the respondent. The court, applying Federal Court Rules O 10 r 7 and having regard to previous decisions, determined that unless the required security is provided by the extended deadline, the proceedings should be dismissed with costs, to prevent further proceedings on the same causes.

Court Disposition

Conditional extension of time to comply granted; proceedings to be dismissed with costs and with a preclusion order if non-compliance continues.

Orders

  • Extend the time for compliance with Order 1 made on 2 October 2002 to 8 January 2003.
  • If the second applicant defaults in complying with the order, the application filed on 26 October 2000 and the amended statement of claim filed on 3 October 2002 be dismissed with costs, and such dismissal prevents the applicants from bringing further proceedings on the same or substantially the same causes of...