McMahon v Deutsche Australia Limited [2001] FCA 1116

McMahon v Deutsche Australia Limited [2001] FCA 1116

The application for security for costs is dismissed because the Applicants are substantially impecunious, the proceedings have been bona fide and funded from family sources, a late application for security would effectively stay proceedings and prevent trial on the merits, and the Respondents' concern was reasonably prompted but is now addressed by Undertaking to notify if third party funding from external sources arises.

Jurisdiction
Australia
Judgment Date
17 August 2001
Procedural Posture
Interlocutory Application / Application for Security for Costs Prior to Main Trial
Outcome
Application for security for costs dismissed
Legal Topics
['security for Costs' 'litigation Funding' 'deeds of Company Arrangement' 'impecuniosity of Parties']
['practice and Procedure' 'insolvency' 'commercial Law'] ['security for Costs' 'litigation Funding' 'deeds of Company Arrangement' 'impecuniosity of Parties']

Case Brief

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Procedural Posture

Interlocutory Application / Application for Security for Costs Prior to Main Trial

Legal Issues

  1. 1 ['Whether security for costs should be ordered against the Applicants given their financial position and the timing of the application' 'Whether an order for security would result in a stay of proceedings due to inability to pay' 'The effect of litigation funding statements and Deeds of Company Arrangement on security for costs applications']

Ratio Decidendi

The application for security for costs is dismissed because the Applicants are substantially impecunious, the proceedings have been bona fide and funded from family sources, a late application for security would effectively stay proceedings and prevent trial on the merits, and the Respondents' concern was reasonably prompted but is now addressed by Undertaking to notify if third party funding from external sources arises.

Court Disposition

Application for security for costs dismissed

Orders

  • ["The Respondent's motion be dismissed." 'No order as to costs.']