Deep Sea Oils Ltd v K M Corporation Pty Ltd [2000] FCA 944

Deep Sea Oils Ltd v K M Corporation Pty Ltd [2000] FCA 944

Where a corporate applicant has debts exceeding its assets and where those standing behind the company can provide security, the Court should order security for costs. Such security may be satisfied by a guarantee from the persons behind the applicant, and the applicant's financial circumstances and evidence of...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
23 June 2000
Procedural Posture
Application for Security for Costs / Interlocutory Application
Outcome
Security for costs ordered; substantive application to be dismissed if security not provided by specified date.
Legal Topics
['security for Costs' 'discretion to Order Security for Costs' 'corporate Insolvency' 'guarantees as Security']
['civil Procedure'] ['security for Costs' 'discretion to Order Security for Costs' 'corporate Insolvency' 'guarantees as Security']

Source-derived case record

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Procedural Posture

Application for Security for Costs / Interlocutory Application

Legal Issues

  1. 1 ['Whether the applicant should be required to provide security for costs under s56 of the Federal Court of Australia Act 1976 (Cth)' 'Appropriateness of a guarantee by persons behind a corporate applicant as security for costs' 'The quantum and form of security for costs']

Ratio Decidendi

Where a corporate applicant has debts exceeding its assets and where those standing behind the company can provide security, the Court should order security for costs. Such security may be satisfied by a guarantee from the persons behind the applicant, and the applicant's financial circumstances and evidence of preparedness to provide a guarantee support the making of such an order.

Court Disposition

Security for costs ordered; substantive application to be dismissed if security not provided by specified date.

Orders

  • ['Substantive application be dismissed unless by 14 July 2000 the applicant provides security for costs in the sum of $40,000, in cash or acceptable bank guarantee, or by guarantee from Mr and Mrs Yasuda as approved/agreed.' 'Costs reserved.' 'Liberty to apply reserved on not less than 48 hours written notice to...