Walshah Pty Limited v Nando's Australia Pty Limited [2013] NSWSC 112

Walshah Pty Limited v Nando's Australia Pty Limited [2013] NSWSC 112

The plaintiff corporation failed to show ability to meet an adverse costs order and did not contest evidence of impecuniosity; given substantial anticipated costs and the evidence, there is a real risk plaintiff will not pay defendants’ costs if unsuccessful, justifying a security for costs order in the sum of $360,000.

Jurisdiction
Australia
Judgment Date
22 February 2013
Procedural Posture
Motion for Security for Costs / Interlocutory Application; Decision on Security for Costs
Outcome
Security for costs ordered against the plaintiff; proceedings stayed if not provided within 14 days; costs of motion to defendants.
Legal Topics
['security for Costs' 'corporate Insolvency' 'discretionary Orders' 'franchise Agreements' 'costs Procedure']
['civil Procedure'] ['security for Costs' 'corporate Insolvency' 'discretionary Orders' 'franchise Agreements' 'costs Procedure']

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Procedural Posture

Motion for Security for Costs / Interlocutory Application; Decision on Security for Costs

Legal Issues

  1. 1 ['Whether jurisdictional condition justifying order for security for costs is met under Corporations Act 2001 (Cth) s 1335(1) and Uniform Civil Procedure Rules 2005' 'Whether a security for costs order should be made for the defendants against the plaintiff' 'Quantum of security for costs']

Ratio Decidendi

The plaintiff corporation failed to show ability to meet an adverse costs order and did not contest evidence of impecuniosity; given substantial anticipated costs and the evidence, there is a real risk plaintiff will not pay defendants’ costs if unsuccessful, justifying a security for costs order in the sum of $360,000.

Court Disposition

Security for costs ordered against the plaintiff; proceedings stayed if not provided within 14 days; costs of motion to defendants.

Orders

  • ["The plaintiff is to provide security for the defendants' costs up to and including the amount of $360,000, in a form acceptable to the Registrar." 'In the event that the plaintiff does not provide such security within 14 days of this order, the proceedings on the statement of claim are to be stayed until such...