Kavcor Pty Ltd (in liq) & Anor v Kavanagh [2005] NSWSC 1163

Kavcor Pty Ltd (in liq) & Anor v Kavanagh [2005] NSWSC 1163

The evidence did not establish that Kavcor was unable to obtain litigation funding from creditors or commercial litigation funders and therefore did not demonstrate insurmountable impecuniosity; accordingly, security for costs in the sum of $30,000 was ordered against Kavcor.

Jurisdiction
Australia
Judgment Date
15 November 2005
Procedural Posture
Corporations – Liquidation – Security for Costs Application / Interlocutory Application for Security for Costs
Outcome
Security for costs ordered with liberty to apply.
Legal Topics
['security for Costs' 'companies in Liquidation' 'litigation Funding']
['corporations Law' 'civil Procedure'] ['security for Costs' 'companies in Liquidation' 'litigation Funding']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations – Liquidation – Security for Costs Application / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 ['Whether a company in liquidation should be ordered to provide security for costs under s 1335(1) of the Corporations Act 2001 (Cth)' 'Whether absence of funds or potential stifling of the claim by security order displaces the usual order for security for costs']

Ratio Decidendi

The evidence did not establish that Kavcor was unable to obtain litigation funding from creditors or commercial litigation funders and therefore did not demonstrate insurmountable impecuniosity; accordingly, security for costs in the sum of $30,000 was ordered against Kavcor.

Court Disposition

Security for costs ordered with liberty to apply.

Orders

  • ['Kavcor to provide security for costs of the Defendant in the sum of $30,000.' "Kavcor's claim against the Defendant stayed until security provided." 'Liberty to any party to seek variation of the amount of security at any time.' 'Liberty to Plaintiffs to apply to discharge the orders, if so advised.']