East Grace Corporation v Xing (No 1) [2005] FCA 219

East Grace Corporation v Xing (No 1) [2005] FCA 219

Where an applicant is an off-shore corporation with no assets in Australia bringing an application for pre-action discovery involving some complexity, and the respondent faces a legitimate risk of non-recovery, the court may order additional security to reasonably reflect likely recoverable costs, but not at full indemnity.

Jurisdiction
Australia
Judgment Date
01 July 2005
Procedural Posture
Motion for Security for Costs / Interlocutory
Outcome
Additional security for costs ordered; action to be stayed if security not paid; costs of motion reserved; liberty to apply granted.
Legal Topics
['security for Costs' 'pre Action Discovery' 'assessment of Quantum of Security']
['practice and Procedure'] ['security for Costs' 'pre Action Discovery' 'assessment of Quantum of Security']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Motion for Security for Costs / Interlocutory

Legal Issues

  1. 1 ["Whether the applicant should provide additional security for the respondent's costs." 'How the quantum of additional security should be determined.' "Considerations relevant to the risk of non-recovery of costs given applicant's lack of assets in Australia."]

Ratio Decidendi

Where an applicant is an off-shore corporation with no assets in Australia bringing an application for pre-action discovery involving some complexity, and the respondent faces a legitimate risk of non-recovery, the court may order additional security to reasonably reflect likely recoverable costs, but not at full indemnity.

Court Disposition

Additional security for costs ordered; action to be stayed if security not paid; costs of motion reserved; liberty to apply granted.

Orders

  • ["Applicant to provide further security for respondent's costs by paying $A35,000 into an interest bearing account held by the Court on or before 8 July 2005." 'Action to be stayed if security not paid by the date specified.' 'Costs of the motion reserved.' 'Liberty to apply.']