Copson v DCM Coffee and Donuts Pty Ltd [1996] FCA 510

IN THE FEDERAL COURT OF AUSTRALIA )

QUEENSLAND DISTRICT REGISTRY ) No. QG 175 of 1995

GENERAL DIVISION )

BETWEEN :MARK COPSON and ROSLYN CORAL COPSON

Applicants

AND :DCM COFFEE AND DONUTS PTY LTD and IAN NORRISS

Respondents

Spender J Brisbane 4 June 1996

MINUTES OF ORDER

THE COURT ORDERS THAT:

(1)the cross-claim of DCM Coffee and Donuts Pty Ltd be

stayed, unless within sixty days of today it provides security in the sum of $10,000.00 to the satisfaction of the Registrar for the prosecution of its cross-claim;

(2)the costs of the applicants on the application for

security for costs should be their costs on the cross-claim.

Note: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 ) No. QG 175 of 1995 GENERAL DIVISION )

BETWEEN :MARK COPSON and Roslyn Coral COPSON Applicants

AND :DCM COFFEE AND DONUTS PTY LTD and IAN NORRISS

Respondents

CORAM : Spender J PLACE: Brisbane DATE: 4 June 1996

REASONS FOR JUDGMENT

This is an application for security for costs filed on 17 May this year in which applicants, Mark William Copson and Roslyn Coral Copson, seek an order that the first respondent, DCM Coffee and Donuts Pty Ltd, provide security for costs in relation to its cross-claim against the applicants. The principal proceedings involve allegations of misleading and deceptive conduct against the respondents in respect of profitability forecasts for a coffee and donut shop to be conducted at Capalaba. The essence of the allegation is that

there was no sufficient basis for those forecasts.

By a cross-claim the first respondent seeks to recover lost franchise fees, loss of the use of money, and damages from the entry into the Capalaba lease. The circumstance is the

usual one where the franchisor has a lease in respect of the