Prime Capital Securities Pty Ltd v Betty Christou [2018] NSWDC 395

Prime Capital Securities Pty Ltd v Betty Christou [2018] NSWDC 395

On the evidence, the plaintiff was unlikely to be able to meet an adverse costs order. The order for security for costs is appropriate given the plaintiff's minimal share capital, lack of real property, failure to respond to requests for evidence of financial capacity, and the defensive nature of the proceedings. The amount of security is determined based on the estimated likely costs, with an allowance made due to the timing of the application.

Jurisdiction
Australia
Judgment Date
14 December 2018
Procedural Posture
Civil / Interlocutory Application for Security for Costs
Outcome
Security for costs ordered in the sum of $35,000; proceedings stayed until security provided; defendant awarded costs of the Notice of Motion.
Legal Topics
['security for Costs' 'corporations' 'contract' 'impecuniosity' 'civil Litigation']
['civil Procedure' 'costs'] ['security for Costs' 'corporations' 'contract' 'impecuniosity' 'civil Litigation']

Case Brief

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Procedural Posture

Civil / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 ["Should the plaintiff be ordered to provide security for the defendant's costs under rule 42.21 of the Uniform Civil Procedure Rules 2005 and/or section 1335 of the Corporations Act 2001 (Cth)?" 'Is the plaintiff likely to be unable to meet an adverse costs order?' 'Are the amounts claimed by the plaintiff genuine and supported by the loan approval document terms?']

Ratio Decidendi

On the evidence, the plaintiff was unlikely to be able to meet an adverse costs order. The order for security for costs is appropriate given the plaintiff's minimal share capital, lack of real property, failure to respond to requests for evidence of financial capacity, and the defensive nature of the proceedings. The amount of security is determined based on the estimated likely costs, with an allowance made due to the timing of the application.

Court Disposition

Security for costs ordered in the sum of $35,000; proceedings stayed until security provided; defendant awarded costs of the Notice of Motion.

Orders

  • ["The plaintiff is to provide security for the defendant's costs by paying into Court the sum of $35,000 or by otherwise providing security for that amount in a manner satisfactory to the defendant." 'Until that security is provided, there will be a stay of the proceedings.' 'The security is to be provided on or...