Firexpress Australia Pty Ltd v Imago Exchange Pty Limited [2022] FCA 129

Firexpress Australia Pty Ltd v Imago Exchange Pty Limited [2022] FCA 129

A personal guarantee from Mrs Dooley, a stranger to the litigation but with sufficient disclosed assets and an undertaking not to encumber or sell property without notice, is an adequate and acceptable form of security for costs, as it does not impose an unacceptable disadvantage on the respondents and meets the protective object of security for costs orders.

Jurisdiction
Australia
Judgment Date
22 February 2022
Procedural Posture
Interlocutory Application for Security for Costs in Ongoing Proceedings / Decision on Form and Adequacy of Security for Costs
Outcome
Applications for security for costs granted; the form of security to be by way of guarantee from Mrs Dooley with undertaking.
Legal Topics
['security for Costs' 'guarantees as Security' 'personal Guarantees' 'form of Security for Costs' 'stay of Proceedings' 'discretion as to Form of Security']
['practice and Procedure' 'commercial Law' 'corporations Law'] ['security for Costs' 'guarantees as Security' 'personal Guarantees' 'form of Security for Costs' 'stay of Proceedings' 'discretion as to Form of Security']

Case Brief

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Procedural Posture

Interlocutory Application for Security for Costs in Ongoing Proceedings / Decision on Form and Adequacy of Security for Costs

Legal Issues

  1. 1 ['Whether a personal guarantee from a stranger to the litigation (Mrs Dooley) coupled with an undertaking is an adequate form of security for costs' 'Whether such security disadvantages the respondents' 'Whether the usual forms of security (bank guarantee or payment into court) are required in this case']

Ratio Decidendi

A personal guarantee from Mrs Dooley, a stranger to the litigation but with sufficient disclosed assets and an undertaking not to encumber or sell property without notice, is an adequate and acceptable form of security for costs, as it does not impose an unacceptable disadvantage on the respondents and meets the protective object of security for costs orders.

Court Disposition

Applications for security for costs granted; the form of security to be by way of guarantee from Mrs Dooley with undertaking.

Orders

  • ['Within seven days, the applicant and specified respondents are to provide proposed orders to the Associate to Markovic J or competing proposed orders if they cannot agree.' 'If there is no agreement on form of orders or on costs of the security applications, the parties are to have the matter listed for case...