Betz v Parker & Ors [2005] NSWSC 660
The plaintiff did not reside in Australia and had no right to do so, so the discretion under Pt 53 r 2(1)(a) was enlivened. The Court was not satisfied that his ordinary place of residence was New Zealand or that a costs judgment could effectively be enforced there. The evidence showed he had the ability to provide security, and it was not shown that security would prevent him carrying on or expanding his business. Justice therefore required security, but only up to the stage when the matter was ready for call up for allocation of a hearing date, not through final hearing.
- Jurisdiction
- Australia
- Judgment Date
- 06 July 2005
- Procedural Posture
- Professional Negligence Claim; Application for Security for Costs / Interlocutory Application Under Pt 53 R 2 of the Supreme Court Rules
- Outcome
- Application granted in part; plaintiff ordered to provide security for costs of $40,000 and proceedings stayed pending provision of security.
- Legal Topics
- ['security for Costs' 'plaintiff Ordinarily Resident Outside New South Wales' 'stay Pending Provision of Security' 'enforcement of Costs Judgment Overseas']
Case Brief
Summary, issues, holding and outcome
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Procedural Posture
Professional Negligence Claim; Application for Security for Costs / Interlocutory Application Under Pt 53 R 2 of the Supreme Court Rules
Legal Issues
- 1 ['Whether the plaintiff was ordinarily resident outside New South Wales so as to enliven the discretion to order security for costs under Pt 53 r 2(1)(a) of the Supreme Court Rules.' "Whether the discretion should be exercised to require security for costs in circumstances where the plaintiff alleged the defendants' negligence caused his inability to reside in Australia." "Whether ordering security would stifle the litigation or unjustly interfere with the plaintiff's business activities." 'Whether any security should be limited to the cost of registering a costs judgment in New Zealand because of reciprocal enforcement arrangements.']
Ratio Decidendi
The plaintiff did not reside in Australia and had no right to do so, so the discretion under Pt 53 r 2(1)(a) was enlivened. The Court was not satisfied that his ordinary place of residence was New Zealand or that a costs judgment could effectively be enforced there. The evidence showed he had the ability to provide security, and it was not shown that security would prevent him carrying on or expanding his business. Justice therefore required security, but only up to the stage when the matter was ready for call up for allocation of a hearing date, not through final hearing.
Court Disposition
Application granted in part; plaintiff ordered to provide security for costs of $40,000 and proceedings stayed pending provision of security.
Orders
- ['Order that the plaintiff give security in the sum of $40,000 for the costs of the defendants incurred and to be incurred until the cause is ready for call up for the allocation of a hearing date.' 'Such security is to be provided in such manner as may be agreed between the parties or as determined by the Court.'...
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