New Mining and Exploring Syndicate, Ltd v. Chalmers & Hunter and Others [1909] ScotLR 1002 (20 July 1909)

New Mining and Exploring Syndicate, Ltd v. Chalmers & Hunter and Others [1909] ScotLR 1002 (20 July 1909)

The Lord Ordinary was justified in exercising his discretion under section 278 of the Companies (Consolidation) Act 1908 to order the pursuers, a limited company, to find caution for the defenders' costs, as credible testimony established the company's inability to pay such costs if unsuccessful.

Citation
[1909] ScotLR 1002
Parties
Pursuer: New Mining and Exploring Syndicate, Limited; Defender: Chalmers & Hunter; Defender: H. B. Hunter; Defender: R. M. Maclay
Jurisdiction
Scotland
Judgment Date
20 July 1909
Procedural Posture
Civil / Reclaiming Motion (appeal) Against Lord Ordinary's Order for Caution for Expenses
Outcome
reclaiming motion refused; Lord Ordinary's order for caution for expenses adhered to
Legal Topics
Security for Costs, Limited Company Liability, Companies (consolidation) Act 1908 Section 278, Court Discretion in Ordering Caution
Company Law Civil Procedure Security for Costs Limited Company Liability Companies (consolidation) Act 1908 Section 278 Court Discretion in Ordering Caution

Case Brief

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Parties

New Mining and Exploring Syndicate, Limited

Pursuer

Chalmers & Hunter

Defender

H. B. Hunter

Defender

R. M. Maclay

Defender

Procedural Posture

Civil / Reclaiming Motion (appeal) Against Lord Ordinary's Order for Caution for Expenses

Legal Issues

  1. 1 Whether the court was justified in ordering a limited company pursuer to find caution for expenses under section 278 of the Companies (Consolidation) Act 1908
  2. 2 Whether credible testimony existed that the company would be unable to pay the defenders' costs if unsuccessful

Ratio Decidendi

The Lord Ordinary was justified in exercising his discretion under section 278 of the Companies (Consolidation) Act 1908 to order the pursuers, a limited company, to find caution for the defenders' costs, as credible testimony established the company's inability to pay such costs if unsuccessful.

Court Disposition

reclaiming motion refused; Lord Ordinary's order for caution for expenses adhered to

Orders

  • Pursuers to find caution for defenders' costs under section 278 of the Companies (Consolidation) Act 1908
  • Action sisted until caution found