Strategic Financial and Project Services Pty Ltd v Bank of China Limited [2009] FCA 604

Strategic Financial and Project Services Pty Ltd v Bank of China Limited [2009] FCA 604

Credible testimony proved real risk applicants would not be able to pay respondents' costs if unsuccessful; applicants failed to adduce evidence of means or oppression by security order; discretion properly exercised to require security for costs in reasonable quantum.

Jurisdiction
Australia
Judgment Date
05 June 2009
Procedural Posture
Security for Costs Application / Interlocutory Order
Outcome
Security for costs ordered against both applicants
Legal Topics
['security for Costs' 'discretion Under S 1335 Corporations Act' 'discretion Under S 56 Federal Court of Australia Act' 'prima Facie Evidence of Inability to Pay' 'requirements and Admissibility of Financial Statements']
['corporate Law' 'practice and Procedure'] ['security for Costs' 'discretion Under S 1335 Corporations Act' 'discretion Under S 56 Federal Court of Australia Act' 'prima Facie Evidence of Inability to Pay' 'requirements and Admissibility of Financial Statements']

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Procedural Posture

Security for Costs Application / Interlocutory Order

Legal Issues

  1. 1 ['Whether credible testimony establishes reason to believe applicants unable to pay costs under s 1335 Corporations Act' 'Whether court should exercise discretion to order security for costs against corporate applicants' 'If quantum and form of security for costs required']

Ratio Decidendi

Credible testimony proved real risk applicants would not be able to pay respondents' costs if unsuccessful; applicants failed to adduce evidence of means or oppression by security order; discretion properly exercised to require security for costs in reasonable quantum.

Court Disposition

Security for costs ordered against both applicants

Orders

  • ["Applicants to provide $250,000 security to first respondent in form of bank guarantee or other form satisfactory to Registrar; copy to be served on first respondent's solicitor." 'Proceedings stayed as against first respondent until security provided.' "First respondent may apply to vary security amount on seven...