In the matter of Imperium Projects Pty Limited [2015] NSWSC 123

In the matter of Imperium Projects Pty Limited [2015] NSWSC 123

Because the Plaintiff succeeded only partly on the s 237 leave application and discrete unsuccessful issues occupied a significant portion of the hearing, the proper costs order was not that the Defendants pay all costs forthwith, but that, subject to further order, the Second and Third Defendants pay 50% of the Plaintiff's costs of the leave application if the derivative action is determined in favour of Imperium. Leave was confined to the claims on which leave had been granted, and Imperium was to be joined as a plaintiff and removed as a defendant.

Jurisdiction
Australia
Judgment Date
26 February 2015
Procedural Posture
Application Under S 237 of the Corporations Act 2001 (cth) for Leave to Bring Derivative Proceedings / Determination of Form of Orders and Costs Following Judgment Granting Leave in Part
Outcome
Leave granted in part to bring derivative proceedings; orders made as to joinder, pleadings, security for costs timetable, directions, and conditional costs.
Legal Topics
['derivative Proceedings' 'leave Under S 237 of the Corporations Act 2001 (cth)' 'costs of Interlocutory Proceedings' 'costs in the Cause' 'partial Success on Application' 'security for Costs']
['corporations' 'costs' 'civil Procedure'] ['derivative Proceedings' 'leave Under S 237 of the Corporations Act 2001 (cth)' 'costs of Interlocutory Proceedings' 'costs in the Cause' 'partial Success on Application' 'security for Costs']

Case Brief

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Procedural Posture

Application Under S 237 of the Corporations Act 2001 (cth) for Leave to Bring Derivative Proceedings / Determination of Form of Orders and Costs Following Judgment Granting Leave in Part

Legal Issues

  1. 1 ['Whether the orders granting leave should be limited to the claims on which the Plaintiff succeeded.' 'Whether Imperium Projects Pty Ltd should be joined as a plaintiff and removed as a defendant.' 'What costs order should be made where the Plaintiff was only partially successful on the leave application.' "Whether the Second and Third Defendants should pay the Plaintiff's costs forthwith or only if the derivative proceedings are successful."]

Ratio Decidendi

Because the Plaintiff succeeded only partly on the s 237 leave application and discrete unsuccessful issues occupied a significant portion of the hearing, the proper costs order was not that the Defendants pay all costs forthwith, but that, subject to further order, the Second and Third Defendants pay 50% of the Plaintiff's costs of the leave application if the derivative action is determined in favour of Imperium. Leave was confined to the claims on which leave had been granted, and Imperium was to be joined as a plaintiff and removed as a defendant.

Court Disposition

Leave granted in part to bring derivative proceedings; orders made as to joinder, pleadings, security for costs timetable, directions, and conditional costs.

Orders

  • ['Grant leave pursuant to section 237 of the Corporations Act to the Plaintiff to bring proceedings on behalf of Imperium Projects Pty Ltd against the Second Defendant in respect of the relief claim in paragraphs 10–11 of the Originating Process dated 23 December 2013, limited to the claims in respect of...