Second Lenbourne Pty Ltd v Beagle Management Pty Ltd [1999] FCA 486

FEDERAL COURT OF AUSTRALIA

Second Lenbourne Pty Ltd v Beagle Management Pty Ltd [1999] FCA 486 PRACTICE AND PROCEDURE – applications for security for costs – applicant trustee – s1335 Corporations Law - whether "credible testimony" before the Court that there is reason to believe the applicants will be unable to pay the respondents' costs if the respondents are successful - whether Court should exercise its discretion in favour of order for security – failure or refusal of applicants to adduce evidence of financial accounts - whether rule in Jones v Dunkel applies. Corporations Law: s 1335 Warren Mitchell Pty Ltd v Australian Maritime Officers' Union (1993) 12 ACSR 1 – applied Jones v Dunkel (1959) 101 CLR 298 - considered Tipperary Developments Pty Ltd v State of Western Australia (1996) 22 ACSR 241 -applied Appleglen Pty Ltd v Mainzeal Corporation Pty Ltd (1988) 79 ALR 634 - considered Crypta Fuels Pty Ltd v Svelte Corporation Pty Ltd (1995) 19 ACSR 68 - applied Armstrong White Killham (Managing Agents) Pty Ltd v Insurance Exchange Group of Australia (unreported, Supreme Court of Victoria, Byrne J, 31 October 1997) - distinguished

SECOND LENBOURNE PTY LTD & ORS v BEAGLE MANAGEMENT PTY LTD & ORS VG 299 of 1998 GOLDBERG J 21 APRIL 1999 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VG 299 of 1998

BETWEEN: SECOND LENBOURNE PTY LTD

(ACN 005 988 483)

First Applicant

TARGRIDGE PTY LTD

(ACN 006 751 220)

Second Applicant

AND: BEAGLE MANAGEMENT PTY LTD

(ACN 009 280 791)

First Respondent

B M LIMITED

(ACN 009 362 350)

Second Respondent

BEAGLE HOLDINGS PTY LIMITED

(ACN 009 280 782)