JAG MEDIA LTD v MAGNA SYSTEMS & ENGINEERING (NZ) LTD [2015] NZHC 2292

JAG MEDIA LTD v MAGNA SYSTEMS & ENGINEERING (NZ) LTD [2015] NZHC 2292

Given changed circumstances indicating a real risk to defendants of unrecoverable costs and that the claims have a genuine prospect of success justifying potential significant damages, the Court exercised its discretion under High Court Rules r 7.7 to order security for costs of $50,000 for each separately represented defendant grouping (total $150,000), vacated the imminent trial, and ordered that failure to post the security by the specified date will result in a stay of the proceeding.

Citation
[2015] NZHC 2292
Parties
First Plaintiff: JAG MEDIA LTD; Second Plaintiff: BCITV LTD (formerly BROADCAST INC LTD); First Defendant: MAGNA SYSTEMS & ENGINEERING (NZ) LTD; Second Defendant: COUNTRY TV LTD (formerly COUNTRY 99 TV LTD); Third Defendant: BROADCAST TRAFFIC SYSTEMS LTD; Fourth Defendant: DAVID HUGHES; Fifth Defendant: THE LIVING CHANNEL NEW ZEALAND LTD; Sixth Defendant: EYEWORKS NEW ZEALAND LTD
Court
High Court
Jurisdiction
New Zealand
Judgment Date
22 September 2015
Procedural Posture
Civil Proceeding (high Court) / Pre Trial Interlocutory (security for Costs Application and Proposed Amendment)
Outcome
Application for security for costs granted; trial vacated; directions issued for filing of application to amend and case management; costs reserved.
Legal Topics
Security for Costs, Leave to Amend Statement of Claim, Case Management, Stay for Non Payment of Security
Civil Procedure Costs Company Litigation Security for Costs Leave to Amend Statement of Claim Case Management Stay for Non Payment of Security

Case Brief

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Parties

JAG MEDIA LTD

First Plaintiff

BCITV LTD (formerly BROADCAST INC LTD)

Second Plaintiff

MAGNA SYSTEMS & ENGINEERING (NZ) LTD

First Defendant

COUNTRY TV LTD (formerly COUNTRY 99 TV LTD)

Second Defendant

BROADCAST TRAFFIC SYSTEMS LTD

Third Defendant

DAVID HUGHES

Fourth Defendant

THE LIVING CHANNEL NEW ZEALAND LTD

Fifth Defendant

EYEWORKS NEW ZEALAND LTD

Sixth Defendant

Procedural Posture

Civil Proceeding (high Court) / Pre Trial Interlocutory (security for Costs Application and Proposed Amendment)

Legal Issues

  1. 1 Whether security for costs should be ordered against the plaintiffs
  2. 2 Appropriate amount and structure of security for costs
  3. 3 Whether the October trial should proceed or be vacated in light of proposed amendments and new evidence

Ratio Decidendi

Given changed circumstances indicating a real risk to defendants of unrecoverable costs and that the claims have a genuine prospect of success justifying potential significant damages, the Court exercised its discretion under High Court Rules r 7.7 to order security for costs of $50,000 for each separately represented defendant grouping (total $150,000), vacated the imminent trial, and ordered that failure to post the security by the specified date will result in a stay of the proceeding.

Court Disposition

Application for security for costs granted; trial vacated; directions issued for filing of application to amend and case management; costs reserved.

Orders

  • The trial fixture set to commence 12 October 2015 is vacated and appearances are excused
  • Security for costs of $50,000 to be posted for each grouping of defendants who are separately represented (first and second defendants; third and fourth defendants; fifth and sixth defendants)