Pegasus Gold Inc v Bateman Project Engineering Pty Ltd [1999] FCA 1734

FEDERAL COURT OF AUSTRALIA Pegasus Gold Inc v Bateman Project Engineering [1999] FCA 1734 SECURITY FOR COSTS – the relationship between O 28 r 3 of the Federal Court Rules, s 56 of the Federal Court of Australia Act 1976 (Cth) and s 1335 of the Corporations Law – whether a respondent is entitled to security for costs from an applicant in relation to any costs it may be ordered to pay to a cross-respondent Corporations Law s 1335 Federal Court of Australia Act 1976 (Cth) s 56 Federal Court Rules O 28 r 3 Bell Wholesale Co Pty Limited v Gates Export Corporation (1984) 2FCR 1 followed Southern Cross Airlines Holdings Ltd (in liquidation) v Arthur Anderson & Co & Ors (Drummond J, 6 August 1997, unreported) followed Bruce Pie & Sons Pty Ltd v KH Mainwaring, English and Peldan [1985] 1 Qd R 401 followed PEGASUS GOLD INC & ORS v BATEMAN PROJECT ENGINEERING PTY LIMITED & ORS NG 471 OF 1998 JUDGE: MATHEWS J

DATE: 15 DECEMBER 1999 PLACE: SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 471 OF 1998

BETWEEN: PEGASUS GOLD INC

FIRST APPLICANT

PEGASUS GOLD CORPORATION

SECOND APPLICANT

PEGASUS GOLD AUSTRALIA PTY LIMITED

THIRD APPLICANT

AND: BATEMAN PROJECT ENGINEERING PTY LIMITED

FIRST RESPONDENT

KINHILL PACIFIC PTY LIMITED

SECOND RESPONDENT

KILBORN ENGINEERING PACIFIC PTY LIMITED

THIRD RESPONDENT

SVEDALA AUSTRALIA LIMITED

CROSS-RESPONDENT

JUDGE: MATHEWS J

DATE OF ORDER: 15 DECEMBER 1999

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The applicants provide security for the respondents' costs of the proceedings, excluding any costs that the respondents may be ordered to pay to the cross-respondent. 2. The cross-claimants provide security for the cross-respondent's (Svedala) costs of the proceedings. 3. The matter be referred to a Registrar of the Court for determination and assessment of the nature and amount of security to be provided pursuant to Orders 1 and 2 hereof. 4. For the purposes of Order 2, the respondents and cross-respondent be granted leave to forthwith approach a Registrar to seek a hearing date for determination of their costs up to and including the conclusion of discovery. 5. Thereafter, the respondents and the cross-respondent be granted liberty to apply to a Registrar on 7 days' notice to seek any further amount or amounts for security for their costs. 6. I reserve the question of costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.