Molnar Engineering Pty Ltd v. The Herald & Weekly Times Ltd & Anor [1985] FCA 56

Molnar Engineering Pty Ltd v. The Herald & Weekly Times Ltd & Anor [1985] FCA 56

The threshold under s.533(1) Companies (Victoria) Code has been satisfied as credible testimony gives reason to believe Molnar Engineering will be unable to pay the costs of Mr. Burns if he is successful. No sufficient countervailing evidence was provided by Molnar Engineering. In the exercise of discretion, the motion is not oppressive, has not been unduly delayed, and an order protects the respondent's financial position. Security for costs shall be ordered for $35,000.

Parties
Applicant: Molnar Engineering Pty. Ltd.; Respondent: The Herald & Weekly Times Ltd.; Respondent: E.J. Burns
Jurisdiction
Australia
Judgment Date
22 February 1985
Procedural Posture
Application for Security for Costs / Interlocutory Motion
Outcome
Security for costs ordered against the applicant; stay on proceedings pending provision of security; applicant to pay costs of the motion.
Legal Topics
Security for Costs, Inability of Corporation to Pay Costs, Threshold Requirements for Security, Exercise of Discretion in Granting Security for Costs
Civil Procedure Corporate Law Security for Costs Inability of Corporation to Pay Costs Threshold Requirements for Security Exercise of Discretion in Granting Security for Costs

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Parties

Molnar Engineering Pty. Ltd.

Applicant

The Herald & Weekly Times Ltd.

Respondent

E.J. Burns

Respondent

Procedural Posture

Application for Security for Costs / Interlocutory Motion

Legal Issues

  1. 1 Whether security for costs should be ordered against the applicant corporation under s.533(1) Companies (Victoria) Code and s.56 Federal Court of Australia Act 1976
  2. 2 Whether the applicant company is unable to pay the respondent’s costs if respondent is successful
  3. 3 Appropriate quantum of security

Ratio Decidendi

The threshold under s.533(1) Companies (Victoria) Code has been satisfied as credible testimony gives reason to believe Molnar Engineering will be unable to pay the costs of Mr. Burns if he is successful. No sufficient countervailing evidence was provided by Molnar Engineering. In the exercise of discretion, the motion is not oppressive, has not been unduly delayed, and an order protects the respondent's financial position. Security for costs shall be ordered for $35,000.

Court Disposition

Security for costs ordered against the applicant; stay on proceedings pending provision of security; applicant to pay costs of the motion.

Orders

  • Molnar Engineering Pty. Ltd. to give security of $35,000 for costs of E.J. Burns, form to be agreed or determined by the Court.
  • Further proceedings against E.J. Burns stayed until security provided.