Scanno Pty Ltd v Saab- Scania Australia Pty Ltd [1983] FCA 405

Scanno Pty Ltd v Saab- Scania Australia Pty Ltd [1983] FCA 405

Taking the financial material as a whole, including Scanno's minimal paid-up capital, mortgaged assets, debentures, trading trust position and the later appointment of a receiver and manager, and in the absence of evidence from Scanno or any allegation that the amount sought would embarrass its conduct of the litigation, Saab made out its case for security for costs and $5000 was a reasonable amount.

Jurisdiction
Australia
Judgment Date
23 December 1983
Procedural Posture
Application for Security for Costs in a Commercial Proceeding Involving Trade Practices Act 1974 and Common Law Claims and Counterclaims / Reasons for Judgment and Orders on Respondent's Motion for Security for Costs
Outcome
Respondent's application for security for costs granted; costs of the application reserved.
Legal Topics
['security for Costs' "corporate Applicant's Financial Position" 'credible Testimony Under Companies (victoria) Code S.533(1)' 'discretion to Order Security for Costs' 'receivership']
['civil Procedure' 'corporations' 'trade Practices' 'commercial Law'] ['security for Costs' "corporate Applicant's Financial Position" 'credible Testimony Under Companies (victoria) Code S.533(1)' 'discretion to Order Security for Costs' 'receivership']

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Procedural Posture

Application for Security for Costs in a Commercial Proceeding Involving Trade Practices Act 1974 and Common Law Claims and Counterclaims / Reasons for Judgment and Orders on Respondent's Motion for Security for Costs

Legal Issues

  1. 1 ['Whether the respondent had established a basis for an order that the applicant provide security for costs.' 'Whether the Court should exercise its discretion to order security for costs in favour of the respondent.' 'What amount of security for costs should be ordered.']

Ratio Decidendi

Taking the financial material as a whole, including Scanno's minimal paid-up capital, mortgaged assets, debentures, trading trust position and the later appointment of a receiver and manager, and in the absence of evidence from Scanno or any allegation that the amount sought would embarrass its conduct of the litigation, Saab made out its case for security for costs and $5000 was a reasonable amount.

Court Disposition

Respondent's application for security for costs granted; costs of the application reserved.

Orders

  • ['The applicant provide security for the costs of the respondent, in the sum of $5000, on or before 6 February 1984.' 'The application be set down for hearing on 14 May 1984.' 'The directions hearing herein be adjourned to 2 March 1984.' 'Liberty be reserved to each party to apply generally, upon seven days notice...