MCEWAN (2003) LIMITED V SHARP TUDHOPE HC TAU CIV 2007-470-654

MCEWAN (2003) LIMITED V SHARP TUDHOPE HC TAU CIV 2007-470-654

Balancing the defendant's entitlement to protection against unrecoverable costs and the plaintiff's arguable claim plus credible contention that its impecuniosity was caused or contributed to by the defendant, the court exercised its discretion to order security for costs but fixed it at $15,000 to avoid denying the...

Source-derived case information.

Citation
openlaw-51da1f1b_270b_4314_b9ab_45d9d0138c9b.pdf
Parties
Plaintiff: MCEWAN (2003) LIMITED; Defendant: SHARP TUDHOPE
Court
High Court
Jurisdiction
New Zealand
Judgment Date
18 September 2008
Procedural Posture
Civil Negligence Claim Against Solicitors With Interlocutory Application for Security for Costs / Interlocutory — Security for Costs Hearing and Decision
Outcome
Order for security for costs granted at reduced quantum to avoid denying access to court
Legal Topics
Security for Costs, Impecuniosity, Guarantees, Contracts Enforcement Act 1952, Costs Orders
Civil Procedure Legal Professional Negligence Contract Law Companies Law Security for Costs Impecuniosity Guarantees Contracts Enforcement Act 1952 +1 more

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Parties

MCEWAN (2003) LIMITED

Plaintiff

SHARP TUDHOPE

Defendant

Procedural Posture

Civil Negligence Claim Against Solicitors With Interlocutory Application for Security for Costs / Interlocutory — Security for Costs Hearing and Decision

Legal Issues

  1. 1 Whether security for costs should be ordered under High Court Rule 60
  2. 2 Quantum of security for costs
  3. 3 Whether the plaintiff's impecuniosity was caused by the defendant and should mitigate security

Ratio Decidendi

Balancing the defendant's entitlement to protection against unrecoverable costs and the plaintiff's arguable claim plus credible contention that its impecuniosity was caused or contributed to by the defendant, the court exercised its discretion to order security for costs but fixed it at $15,000 to avoid denying the plaintiff access to the courts.

Court Disposition

Order for security for costs granted at reduced quantum to avoid denying access to court

Orders

  • Plaintiff to pay $15,000 to the Registrar of the High Court at Tauranga within 10 working days of issue of judgment
  • Registrar to hold the sum on an interest bearing account and not to release it to either party pending further order of the Court