Deangrove Pty Limited v Commonwealth Bank of Australia [2001] FCA 1724

FEDERAL COURT OF AUSTRALIA

Deangrove Pty Limited v Commonwealth Bank of Australia [2001] FCA 1724 COSTS – construction of order of the Court requiring second applicant to provide the respondent with security in respect of first applicant's "maximum potential liability for costs" – extent of the obligation to provide fresh security. Federal Court of Australia Act 1976 (Cth), s 43. Deangrove Pty Ltd (Receivers and Managers Appointed) v Commonwealth Bank of Australia (2001) 108 FCR 77, cited. Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225, cited. Re Wilcox; Ex parte Venture Industries Pty Ltd (No 2 ) (1996) 72 FCR 151, cited.

DEANGROVE PTY LIMITED (RECEIVERS AND MANAGERS APPOINTED) & ANOR v COMMONWEALTH BANK OF AUSTRALIA N 1142 OF 2000 SACKVILLE J SYDNEY 5 DECEMBER 2001

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 1142 OF 2000

IN THE MATTER OF DEANGROVE PTY LIMITED (RECEIVERS AND MANAGERS APPOINTED)

BETWEEN: DEANGROVE PTY LIMITED (RECEIVERS AND MANAGERS APPOINTED)

FIRST APPLICANT

JOHN ANTHONY JEANS

SECOND APPLICANT

AND: COMMONWEALTH BANK OF AUSTRALIA

RESPONDENT

JUDGE: SACKVILLE J

DATE OF ORDER: 7 DECEMBER 2001

PLACE: SYDNEY

THE COURT ORDERS AND DIRECTS THAT: 1. The motion be remitted to a Registrar of the Court for assessment of the quantum of the additional bank guarantee to be provided by Mr Jeans, such assessment to be in conformity with these reasons for judgment and orders. 2. The hearing before the Registrar be expedited. 3. (a) The affidavit evidence read before me be evidence in the assessment to be determined by the Registrar; (b) Mr Jeans have leave to file and rely upon (subject to any proper objections) a further affidavit by Ms Davitt, in answer to Mr Cockayne's affidavit, such affidavit to be filed and served on or before 14 December 2001; (c) there be no cross-examination of deponents in the proceedings remitted to the Registrar; and (d) the assessment be made by the Registrar in accordance with the principles generally applicable to an assessment of costs where costs have been ordered to be paid on an indemnity basis. 4. Without prejudice to the Registrar's assessment and the final orders made on the motion, Mr Jeans provide to the Bank, by 21 December 2001, an irrevocable bank guarantee which is (a) issued by an Australian trading bank; (b) issued in favour of the receivers and managers of Deangrove; (c) payable on demand; and (d) for an amount of $68,000, such guarantee to be in addition to the guarantee already provided by Mr Jeans. 5. Costs of the motion be reserved for consideration by me. 6. Liberty be granted to apply on 48 hours notice. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.