Sheraz Pty Ltd v Rumsley [2019] FCA 1522

Sheraz Pty Ltd v Rumsley [2019] FCA 1522

Neither party acted unreasonably; Mr Rumsley had already given an undertaking, and repeated requests for formalisation were unnecessary. As neither party's conduct warranted costs and there was no hearing on the merits, the proper exercise of discretion was to make no order as to costs.

Jurisdiction
Australia
Judgment Date
16 September 2019
Procedural Posture
Application for Injunction Related to Statutory Demand / Costs Determination Following Indication of Discontinuance
Outcome
No order as to costs. Plaintiff to discontinue proceedings.
Legal Topics
['statutory Demands' 'injunction Applications' 'costs Discretion' 'corporate Insolvency']
['corporations Law' 'civil Procedure'] ['statutory Demands' 'injunction Applications' 'costs Discretion' 'corporate Insolvency']

Case Brief

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Procedural Posture

Application for Injunction Related to Statutory Demand / Costs Determination Following Indication of Discontinuance

Legal Issues

  1. 1 ['Whether costs should be awarded following discontinuance of proceedings for injunction to restrain winding up application based on statutory demand' 'Whether parties acted unreasonably in conduct of litigation warranting a costs order']

Ratio Decidendi

Neither party acted unreasonably; Mr Rumsley had already given an undertaking, and repeated requests for formalisation were unnecessary. As neither party's conduct warranted costs and there was no hearing on the merits, the proper exercise of discretion was to make no order as to costs.

Court Disposition

No order as to costs. Plaintiff to discontinue proceedings.

Orders

  • ['The plaintiff must file and serve any notice of discontinuance within 14 days of the date of these orders.' "For the purposes of r 26.12(7) of the Federal Court Rules 2011 (Cth), the plaintiff is not liable to pay the defendant's costs of the proceedings."]