In the matter of Felan’s Fisheries Pty Limited [2016] NSWSC 1351

In the matter of Felan’s Fisheries Pty Limited [2016] NSWSC 1351

Security for costs should not be ordered against the plaintiff for the claims against SFM, as these are defensive in character and such an order would be oppressive, but security for costs is appropriate for claims against the individual directors, where proceedings are not purely defensive and joinder was not necessary for the relief sought.

Jurisdiction
Australia
Judgment Date
23 September 2016
Procedural Posture
Equity Corporations List / Interlocutory Application for Security for Costs
Outcome
Security for costs denied as against Sydney Fish Market Pty Limited; security for costs ordered against plaintiff in favour of directors; parties to bring in agreed orders within 14 days.
Legal Topics
['security for Costs' "directors' Duties" 'shareholders Rights' 'defensive Proceedings']
['corporations Law' 'civil Procedure'] ['security for Costs' "directors' Duties" 'shareholders Rights' 'defensive Proceedings']

Case Brief

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Procedural Posture

Equity Corporations List / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 ['Whether there is reason to believe the plaintiff will be unable to pay costs if unsuccessful' 'Whether the proceedings are defensive in character and if so, whether security for costs may be oppressive' 'Quantum and appropriateness of security for costs claimed' 'Necessity of separate legal representation for company and directors']

Ratio Decidendi

Security for costs should not be ordered against the plaintiff for the claims against SFM, as these are defensive in character and such an order would be oppressive, but security for costs is appropriate for claims against the individual directors, where proceedings are not purely defensive and joinder was not necessary for the relief sought.

Court Disposition

Security for costs denied as against Sydney Fish Market Pty Limited; security for costs ordered against plaintiff in favour of directors; parties to bring in agreed orders within 14 days.

Orders

  • ["Plaintiff to provide security for directors' costs as calculated." "Plaintiff to pay directors' costs of the application as agreed or assessed." 'Parties to submit agreed orders or respective draft orders and submissions within 14 days.']