Telstra Corp Ltd v First Netcom Pty Ltd [2000] FCA 309

FEDERAL COURT OF AUSTRALIA

Telstra Corp Ltd v First Netcom Pty Ltd [2000] FCA 309

INJUNCTIONS – undertaking as to damages – security for undertaking – Mareva injunction pending giving of security

COSTS – security

INSOLVENCY – effort to prove solvency of corporation inconsistent with argument that security should not be granted because corporation's inability to pay will abort the case

TELSTRA CORPORATION LIMITED (ACN 051 775 556) v FIRST NETCOM PTY LIMITED (ACN 067 043 145) NG 483 OF 1997

EINFELD J 17 MARCH 2000 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 483 OF 1997

BETWEEN: TELSTRA CORPORATION LIMITED

(ACN 051 775 556)

Applicant

AND: FIRST NETCOM PTY LIMITED

(ACN 067 043 145)

Respondent

JUDGE: EINFELD J

DATE OF ORDER: 17 MARCH 2000

WHERE MADE: SYDNEY

THE COURT ORDERS THAT: 1. the respondent provide security for its undertaking as to damages given on 26 June 1997 in a form and manner satisfactory to a Registrar of the Court in the sum of $200,000 by not later than 4pm on Friday 14 April 2000, and in the further sum of $200,000 by not later than 4pm on Friday 5 May 2000 2. pending the security of the first sum of $200,000, the respondent not deal with its funds and other assets in any way other than in the ordinary course of business 3. the respondent provide security for the applicant's costs on the cross claim in the further sum of $50,000 in a form and manner satisfactory to a Registrar of the Court by not later than 4pm on Friday 14 April 2000 4. the respondent pay the applicant's costs of its motion of 6 August 1999 which may be taxed forthwith and are to be paid promptly after taxation

Note: Settlement and entry of orders are dealt with in Order 36 of the Federal Court Rules.