Norfeld P/L v. Booy, L.W. & Anor [1994] FCA 336

Norfeld P/L v. Booy, L.W. & Anor [1994] FCA 336

Because the applicant company appeared to be insolvent and the shareholder's undertaking did not provide a readily available and secure fund to meet the respondents' costs, the preferable course was to order that security for costs be paid as applied for in the notice of motion.

Jurisdiction
Australia
Judgment Date
27 September 1994
Procedural Posture
Application for Security for Costs / Interlocutory Motion
Outcome
Security for costs ordered in favour of the first and second respondents.
Legal Topics
['security for Costs' 'insolvency of Applicant Company' 'undertaking by Shareholder']
['civil Procedure' 'corporations'] ['security for Costs' 'insolvency of Applicant Company' 'undertaking by Shareholder']

Case Brief

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Procedural Posture

Application for Security for Costs / Interlocutory Motion

Legal Issues

  1. 1 ['Whether the applicant should provide security for the costs of the first and second respondents.' 'Whether an undertaking by a shareholder not to call on an unsecured loan provided an adequate alternative to security for costs.']

Ratio Decidendi

Because the applicant company appeared to be insolvent and the shareholder's undertaking did not provide a readily available and secure fund to meet the respondents' costs, the preferable course was to order that security for costs be paid as applied for in the notice of motion.

Court Disposition

Security for costs ordered in favour of the first and second respondents.

Orders

  • ['The applicant provide security for costs of the first and second respondents in the sum of $25,569.60.' 'The applicants in the main proceedings pay the costs of the respondents to this application.' 'The amount of security for costs be paid within 60 days from 27 September 1994.']