Appleglen Pty Ltd v. Mainzeal Corporation Pty Ltd & Anor [1988] FCA 38

JUDGMENT No, 3878S

CATCHWORDS

PRACTICE - security for costs - applicant trustee - whether right to indemnity sufficient - general rule as to applicant trustees - security by way of directors' guarantee - whether prospects of success in suit should be considered.

Companies (Queensland) Code, s.229A

Applegien Pty Ltd v. Mainzeal Corporation Pty Ltd & Anor Qld G125 of 1987

PINCUS J. BRISBANE 3 FEBRUARY 1988

IN THE FEDERAL COURT OF AUSTRALIA )

QUEENSLAND DISTRICT REGISTRY ) QLD G125 of 1987 GENERAL DIVISION ) BETWEEN: APPLEGLEN PTY LTD

Applicant

:

MAINZEAL CORPORATION PTY LTD

First Respondent

AND: PERMANENT TRUSTEE NOMINEES (CANBERRA) LIMITED

Second Respondent

MINUTES OF ORDER

JUDGE MAKING ORDER: PINCUS J. DATE OF ORDER: 3 FEBRUARY 1988 WHERE MADE: BRISBANE

THE COURT ORDERS THAT:

1. security be given to cover the costs of the second respondent in these proceedings, by deed of guarantee executed by the directors, Mr and Mrs Oram, in a form satisfactory to the Registrar, limited to $20,000;

2. the applicant's proceedings against the second respondent be stayed until such a deed is filed and

it is established that an executed copy of the same has been served upon the solicitors for the second respondent;

3. the costs of the application for security be the costs of the second respondent in the proceedings.

Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA )

QUEENSLAND DISTRICT! REGISTRY ) QLD G125 of 1987 GENERAL DIVISION )

BETWEEN: APPLEGLEN PTY LTD Applicant AND: MAINZEAL CORPORATION PTY LTD

First Respondent

AND: PERMANENT TRUSTEE NOMINEES (CANBERRA) LIMITED

Second Respondent

PINCUS J. 3 FEBRUARY 1988

EX TEMPORE REASONS FOR JUDGMENT

The principal claim is under s.52 of the Trade Practices

Act, and there is also a claim under the general law, relating to