Copson, M & Anor v DCM Coffee & Donuts Pty Ltd & Anor [1996] FCA 489

Copson, M & Anor v DCM Coffee & Donuts Pty Ltd & Anor [1996] FCA 489

DCM Coffee and Donuts Pty Ltd's cross-claim is properly characterised as a separate and distinct claim and thus the company is treated as a plaintiff under s 1335(1) of the Corporations Law; given the company's admitted inability to pay security for costs and its directors' inability to satisfy financial requirements, the threshold for ordering security is met. The interests of justice require that the cross-claim be stayed unless DCM provides security for costs in the sum of $10,000 within sixty days.

Jurisdiction
Australia
Judgment Date
04 June 1996
Procedural Posture
General Division Application for Security for Costs / Interlocutory Ruling on Security for Costs
Outcome
application for security for costs granted
Legal Topics
['security for Costs' 'cross Claims' 'misleading and Deceptive Conduct' 'franchise Agreements']
['civil Procedure' 'corporate Law'] ['security for Costs' 'cross Claims' 'misleading and Deceptive Conduct' 'franchise Agreements']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

General Division Application for Security for Costs / Interlocutory Ruling on Security for Costs

Legal Issues

  1. 1 ['Should security for costs be ordered against DCM Coffee and Donuts Pty Ltd on its cross-claim?' "Does DCM Coffee and Donuts Pty Ltd's cross-claim function as a separate and distinct claim so as to be treated as a plaintiff under s 1335(1) of the Corporations Law?"]

Ratio Decidendi

DCM Coffee and Donuts Pty Ltd's cross-claim is properly characterised as a separate and distinct claim and thus the company is treated as a plaintiff under s 1335(1) of the Corporations Law; given the company's admitted inability to pay security for costs and its directors' inability to satisfy financial requirements, the threshold for ordering security is met. The interests of justice require that the cross-claim be stayed unless DCM provides security for costs in the sum of $10,000 within sixty days.

Court Disposition

application for security for costs granted

Orders

  • ['the cross-claim of DCM Coffee and Donuts Pty Ltd be stayed unless within sixty days it provides security in the sum of $10,000 to the satisfaction of the Registrar for prosecution of its cross-claim' 'the costs of the applicants on the application for security for costs are their costs on the cross-claim']