Cosdean Investments Pty Ltd v Football Federation Australia Limited (No 2) [2007] FCA 163

Cosdean Investments Pty Ltd v Football Federation Australia Limited (No 2) [2007] FCA 163

Further security for costs should be ordered against the applicant because it has not demonstrated that the order would stultify the proceedings, particularly as its principal, arms-length creditor stands to be the main beneficiary and there is no evidence that this creditor cannot or will not provide security for costs. The applicant’s impecuniosity was not caused by the respondents' conduct.

Jurisdiction
Australia
Judgment Date
20 February 2007
Procedural Posture
Security for Costs Application / Interlocutory Decision on Further Security for Costs
Outcome
Further orders for security for costs granted.
Legal Topics
['security for Costs' 'impecunious Corporate Litigants' 'creditor Involvement in Litigation']
['civil Procedure' 'corporations Law'] ['security for Costs' 'impecunious Corporate Litigants' 'creditor Involvement in Litigation']

Case Brief

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Procedural Posture

Security for Costs Application / Interlocutory Decision on Further Security for Costs

Legal Issues

  1. 1 ['Whether further security for costs should be ordered against an impecunious applicant company' 'Whether the financial position or willingness of a principal creditor should be considered in assessing if security for costs would stultify the proceedings' "Whether the respondents caused the applicant's impecuniosity"]

Ratio Decidendi

Further security for costs should be ordered against the applicant because it has not demonstrated that the order would stultify the proceedings, particularly as its principal, arms-length creditor stands to be the main beneficiary and there is no evidence that this creditor cannot or will not provide security for costs. The applicant’s impecuniosity was not caused by the respondents' conduct.

Court Disposition

Further orders for security for costs granted.

Orders

  • ['Applicant to provide to Football Federation Australia Limited the further sum of $60,000 by way of additional security for costs.' 'Applicant to provide to Soccer NSW Limited the further sum of $40,000 by way of additional security for costs.']