Fiduciary v Morningstar Research [2004] NSWSC 664

Fiduciary v Morningstar Research [2004] NSWSC 664

Security for costs was ordered against the two corporate plaintiffs because evidence established inability to pay adverse costs, and the involvement of an individual co-plaintiff did not displace the discretion. The stultification and causation arguments failed for lack of evidence; security quantified at $924,536 after reduction for discovery and partial hearing length. Applications to strike out portions of the amended statement of claim and the Industrial Relations proceeding were dismissed. Costs relating to a Federal Court abuse of process motion were ordered to be assessed and paid forthwith.

Jurisdiction
Australia
Judgment Date
27 July 2004
Procedural Posture
Equity Interlocutory Applications in Ongoing Litigation / Interlocutory: Determination of Security for Costs, Strike Out Applications, and Ancillary Orders
Outcome
Orders made for security for costs in the sum of $924,536 against the corporate plaintiffs; related claims by corporate plaintiffs stayed until security given; no stay against individual; applications to strike out parts of the ASC and the IR proceeding dismissed; certain costs to be paid forthwith, remainder costs...
Legal Topics
['security for Costs' 'strike Out Application' 'remuneration Cap' 'costs']
['equity' 'practice & Procedure' 'industrial Relations' 'corporations Law'] ['security for Costs' 'strike Out Application' 'remuneration Cap' 'costs']

Case Brief

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Procedural Posture

Equity Interlocutory Applications in Ongoing Litigation / Interlocutory: Determination of Security for Costs, Strike Out Applications, and Ancillary Orders

Legal Issues

  1. 1 ['Whether corporate plaintiffs should be ordered to give security for costs when one co-plaintiff is an individual' 'How to calculate security for costs in complex, lengthy litigation' 'Whether claims in the amended statement of claim should be struck out for defective notice' 'Whether proceedings in the Industrial Relations Commission should be struck out for exceeding remuneration cap' 'Timing and assessment of costs orders']

Ratio Decidendi

Security for costs was ordered against the two corporate plaintiffs because evidence established inability to pay adverse costs, and the involvement of an individual co-plaintiff did not displace the discretion. The stultification and causation arguments failed for lack of evidence; security quantified at $924,536 after reduction for discovery and partial hearing length. Applications to strike out portions of the amended statement of claim and the Industrial Relations proceeding were dismissed. Costs relating to a Federal Court abuse of process motion were ordered to be assessed and paid forthwith.

Court Disposition

Orders made for security for costs in the sum of $924,536 against the corporate plaintiffs; related claims by corporate plaintiffs stayed until security given; no stay against individual; applications to strike out parts of the ASC and the IR proceeding dismissed; certain costs to be paid forthwith, remainder costs...

Orders

  • ['First and Third Plaintiffs to provide security for costs in the sum of $924,536 within 21 days by paying into court or otherwise as satisfactory to the court.' 'Proceeding by corporate plaintiffs stayed until such security is provided, but not the claims of the individual plaintiff.' 'Defendants have liberty to...