Strategic Financial and Project Services Pty Limited v Bank of China [2012] FCA 445

Strategic Financial and Project Services Pty Limited v Bank of China [2012] FCA 445

Applying a broad-brush approach and considering expert evidence, case complexity, and timing, it is appropriate to order additional security for costs in the sum of $700,000, resulting in a total of $950,000 for the first respondent’s costs, including past and future costs.

Parties
First Applicant: Strategic Financial and Project Services Pty Ltd ACN 110 336 966; Second Applicant: Energreen Wind Systems Pty Ltd ACN 100 729 842; First Respondent: Bank of China Limited ARBN 002 979 955; Second Respondent: Commonwealth Bank of Australia ACN 123 123 124
Jurisdiction
Australia
Judgment Date
01 May 2012
Procedural Posture
Interlocutory Application / Application for Further Security for Costs
Outcome
Applicants ordered to provide additional security for costs, proceedings stayed against first respondent until security provided.
Legal Topics
Security for Costs, Exercise of Discretion, Quantum of Security, Past and Future Costs
Practice and Procedure Corporations Law Security for Costs Exercise of Discretion Quantum of Security Past and Future Costs

Case Brief

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Parties

Strategic Financial and Project Services Pty Ltd ACN 110 336 966

First Applicant

Energreen Wind Systems Pty Ltd ACN 100 729 842

Second Applicant

Bank of China Limited ARBN 002 979 955

First Respondent

Commonwealth Bank of Australia ACN 123 123 124

Second Respondent

Procedural Posture

Interlocutory Application / Application for Further Security for Costs

Legal Issues

  1. 1 whether further security for costs should be ordered and in what quantum
  2. 2 whether security should include past costs

Ratio Decidendi

Applying a broad-brush approach and considering expert evidence, case complexity, and timing, it is appropriate to order additional security for costs in the sum of $700,000, resulting in a total of $950,000 for the first respondent’s costs, including past and future costs.

Court Disposition

Applicants ordered to provide additional security for costs, proceedings stayed against first respondent until security provided.

Orders

  • Applicants provide additional security for the first respondent's costs in the sum of $700,000 in the form of a bank guarantee from an Australian trading bank or other form as Court deems fit, lodged with the Court and copy served on first respondent's solicitors, such that total security is $950,000.
  • Bank guarantee to be lodged with Court by 21 May 2012.