Harrington Services Pty. Ltd (In Liquidation) v. Harrington & Anor. [2003] NSWCA 89

Harrington Services Pty. Ltd (In Liquidation) v. Harrington & Anor. [2003] NSWCA 89

A stay was justified to preserve the appeal given the risk that the fund would be dissipated before determination and the appeal has substance; security for costs was ordered, but conditional upon the Directors' undertaking not to pursue their cross-appeal if security is not given, with the Liquidators to undertake personal responsibility for adverse costs against the Company.

Jurisdiction
Australia
Judgment Date
22 April 2003
Procedural Posture
Appeal / Interlocutory (applications for Stay of Orders and Security for Costs Pending Appeal)
Outcome
Orders on interlocutory applications (stay and security for costs) made; stay granted and security for costs ordered conditionally.
Legal Topics
['stay of Orders' 'security for Costs' "liquidators' Liability" 'corporate Insolvency']
['appeals' 'corporations Law'] ['stay of Orders' 'security for Costs' "liquidators' Liability" 'corporate Insolvency']

Case Brief

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Procedural Posture

Appeal / Interlocutory (applications for Stay of Orders and Security for Costs Pending Appeal)

Legal Issues

  1. 1 ["Whether a stay of Palmer J's orders should be granted pending appeal" 'Whether security for costs should be ordered against the Company and Liquidators']

Ratio Decidendi

A stay was justified to preserve the appeal given the risk that the fund would be dissipated before determination and the appeal has substance; security for costs was ordered, but conditional upon the Directors' undertaking not to pursue their cross-appeal if security is not given, with the Liquidators to undertake personal responsibility for adverse costs against the Company.

Court Disposition

Orders on interlocutory applications (stay and security for costs) made; stay granted and security for costs ordered conditionally.

Orders

  • ['Orders 5 and 6 of Palmer J of 19 February 2003 stayed until further order.' "If within 7 days the Directors undertake not to pursue the cross-appeal if security is not given, the Company and Liquidators must provide security for the Directors' costs by way of the Liquidators undertaking personal responsibility for...