Horizon World Plus TV Pty Ltd v GlobeCast Australia Pty Ltd [2006] FCA 1472

Horizon World Plus TV Pty Ltd v GlobeCast Australia Pty Ltd [2006] FCA 1472

Security for costs was ordered because Horizon's liabilities exceeded its assets and, on the evidence, there was a reasonable chance that any assets would be put beyond the reach of the respondents to frustrate payment of costs. The Court determined that the respondents should have security for their costs, accepting the quantum sought based on reasonable uncontested estimates.

Parties
Applicant: Horizon World Plus TV Pty Ltd; First Respondent: GlobeCast Australia Pty Ltd; Second Respondent: PanAmSat Asia Pty Ltd
Jurisdiction
Australia
Judgment Date
09 November 2006
Procedural Posture
Security for Costs Application / Interlocutory
Outcome
Security for costs ordered
Legal Topics
Security for Costs, Impecuniosity, Corporations
Civil Procedure Security for Costs Impecuniosity Corporations

Case Brief

Summary, issues, holding and outcome

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Parties

Horizon World Plus TV Pty Ltd

Applicant

GlobeCast Australia Pty Ltd

First Respondent

PanAmSat Asia Pty Ltd

Second Respondent

Procedural Posture

Security for Costs Application / Interlocutory

Legal Issues

  1. 1 Whether security for costs should be ordered against the applicant under the Corporations Act 2001 (Cth) s 1335(1), Federal Court of Australia Act 1976 (Cth) s 56, and Federal Court Rules O 28 rr3, 5
  2. 2 Whether applicant's impecuniosity and conduct relating to asset transfers justify an order for security for costs

Ratio Decidendi

Security for costs was ordered because Horizon's liabilities exceeded its assets and, on the evidence, there was a reasonable chance that any assets would be put beyond the reach of the respondents to frustrate payment of costs. The Court determined that the respondents should have security for their costs, accepting the quantum sought based on reasonable uncontested estimates.

Court Disposition

Security for costs ordered

Orders

  • The respondents are to submit short minutes of order providing for security in a form consistent with the reasons or otherwise agreed between the parties on or before 17 November 2006.