Seventy Fourth Wreath Pty Ltd v Wilbow Corporation Pty Ltd & Anor [1998] FCA 1148

Seventy Fourth Wreath Pty Ltd v Wilbow Corporation Pty Ltd & Anor [1998] FCA 1148

Security for costs is ordered because the applicant is a $2 trustee company whose controllers and beneficiaries have given no undertaking to meet respondents' costs; no sufficient evidence has been provided to refute that those benefiting from the litigation have the means to provide security; amount of security determined is $50,000 after discounting interrogatories from the estimate; the existence of a contractual relationship is not a strong enough factor to defeat the order for security.

Parties
Applicant: Seventy Fourth Wreath Pty Ltd (ACN 006 039 210); First Respondent: Wilbow Corporation Pty Ltd (ACN 005 867 596); Second Respondent: Gary Bushby
Jurisdiction
Australia
Judgment Date
15 September 1998
Procedural Posture
Security for Costs Application / Order on Motion for Security for Costs
Outcome
Security for costs ordered; proceeding stayed if security not provided; costs awarded to respondents.
Legal Topics
Security for Costs, Discretion to Order Security, Trustee Company Status, Security for Costs in Federal Court
Practice and Procedure Corporations Law Trade Practices Security for Costs Discretion to Order Security Trustee Company Status Security for Costs in Federal Court

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Parties

Seventy Fourth Wreath Pty Ltd (ACN 006 039 210)

Applicant

Wilbow Corporation Pty Ltd (ACN 005 867 596)

First Respondent

Gary Bushby

Second Respondent

Procedural Posture

Security for Costs Application / Order on Motion for Security for Costs

Legal Issues

  1. 1 Whether security for costs should be ordered against a $2 trustee company
  2. 2 Appropriate quantum for security for costs
  3. 3 Consideration of applicant's status, contractual relationship, and stultification

Ratio Decidendi

Security for costs is ordered because the applicant is a $2 trustee company whose controllers and beneficiaries have given no undertaking to meet respondents' costs; no sufficient evidence has been provided to refute that those benefiting from the litigation have the means to provide security; amount of security determined is $50,000 after discounting interrogatories from the estimate; the existence of a contractual relationship is not a strong enough factor to defeat the order for security.

Court Disposition

Security for costs ordered; proceeding stayed if security not provided; costs awarded to respondents.

Orders

  • On or before 6 October 1998 the applicant provide security for the costs of the respondents up to the commencement of the final hearing of the proceeding in the sum of $50,000 to the satisfaction of the District Registrar of the Court.
  • In the event of non-compliance by the applicant with paragraph 1 hereof the proceeding be stayed pending further order of the Court.