Digital Cinema Network Pty Ltd v Omnilab Media Pty Limited [2010] FCA 1242

Digital Cinema Network Pty Ltd v Omnilab Media Pty Limited [2010] FCA 1242

Given the absence of evidence regarding DCN's liabilities, the failure to disclose financial information sufficient to show an ability to pay, and the low paid up capital, there is reason to believe DCN may not be able to pay an adverse costs order. Discretion to order security is exercised; the amount is set at $65,000 up to and including the mediation date, having regard to the issues and preparation required.

Jurisdiction
Australia
Judgment Date
12 November 2010
Procedural Posture
Civil / Interlocutory Application for Security for Costs
Outcome
Security for costs ordered; proceeding stayed pending provision of security; costs of application awarded to respondents.
Legal Topics
['security for Costs' 'interlocutory Application' 'ability to Pay Adverse Costs' 'exercise of Discretion Under S 1335 of Corporations Act']
['corporations Law' 'civil Procedure'] ['security for Costs' 'interlocutory Application' 'ability to Pay Adverse Costs' 'exercise of Discretion Under S 1335 of Corporations Act']

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Procedural Posture

Civil / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 ["Whether the applicant should provide security for the respondents' costs under s 1335(1) of the Corporations Act 2001 (Cth)" 'Whether there is credible testimony that the applicant corporation may be unable to pay adverse costs if ordered' 'What is the appropriate amount of security for costs']

Ratio Decidendi

Given the absence of evidence regarding DCN's liabilities, the failure to disclose financial information sufficient to show an ability to pay, and the low paid up capital, there is reason to believe DCN may not be able to pay an adverse costs order. Discretion to order security is exercised; the amount is set at $65,000 up to and including the mediation date, having regard to the issues and preparation required.

Court Disposition

Security for costs ordered; proceeding stayed pending provision of security; costs of application awarded to respondents.

Orders

  • ["The applicant provide security for the respondents' costs in the amount of $65,000.00 up to and including the mediation on 25 January 2011 in a form agreed or as approved by the Registrar." 'The proceeding be stayed until security has been provided or further order.' "The applicant pay the respondents' costs of...