Luvnlife Consulting Pty Ltd v Fasha [2024] NSWSC 1386

Luvnlife Consulting Pty Ltd v Fasha [2024] NSWSC 1386

The plaintiff is impecunious, has not demonstrated that its financial position is attributable to the defendants' conduct, and the amount sought for security is proportionate and will not stifle the proceedings. The court accordingly exercises its discretion to order security for costs in the sum of $50,000, with a stay until security is provided.

Parties
Plaintiff: Luvnlife Consulting Pty Ltd; First Defendant: John Fasha; Second Defendant: Lawcover Insurance Pty Ltd; Third Defendant: John Fasha Solicitors Pty Ltd
Jurisdiction
Australia
Judgment Date
31 October 2024
Procedural Posture
Security for Costs Application / Interlocutory (application for Security for Costs)
Outcome
Security for costs ordered; proceedings stayed until payment; costs of the motion to defendants.
Legal Topics
Security for Costs, Impecuniosity, Professional Negligence
Civil Procedure Security for Costs Impecuniosity Professional Negligence

Case Brief

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Parties

Luvnlife Consulting Pty Ltd

Plaintiff

John Fasha

First Defendant

Lawcover Insurance Pty Ltd

Second Defendant

John Fasha Solicitors Pty Ltd

Third Defendant

Procedural Posture

Security for Costs Application / Interlocutory (application for Security for Costs)

Legal Issues

  1. 1 Whether security for costs should be ordered against the plaintiff under r 42.21 UCPR and s 1335(1) Corporations Act 2001 (Cth)
  2. 2 Whether the plaintiff's impecuniosity is attributable to the defendants' conduct
  3. 3 Whether security for costs would stifle the proceedings

Ratio Decidendi

The plaintiff is impecunious, has not demonstrated that its financial position is attributable to the defendants' conduct, and the amount sought for security is proportionate and will not stifle the proceedings. The court accordingly exercises its discretion to order security for costs in the sum of $50,000, with a stay until security is provided.

Court Disposition

Security for costs ordered; proceedings stayed until payment; costs of the motion to defendants.

Orders

  • Plaintiff to provide security for the defendants' costs in the sum of $50,000.
  • Security to be made by payment into Court or other means satisfactory to the Registrar by 11 December 2024.