Trilogy Computer Systems Pty Limited v CTI Communications Limited [2001] FCA 1778

FEDERAL COURT OF AUSTRALIA

Trilogy Computer Systems Pty Limited v CTI Communications Limited [2001] FCA 1778

PRACTICE AND PROCEDURE – security for costs – applicants ordinarily resident outside Australia – considerations as to form and amount of security – no question of principle. Federal Court Act 1976 s 56 Federal Court Rules O 28 r 3

Trilogy Computer Systems Pty Limited ACN 006 673 123 and ors v CTI Communications Limited ACN 071 781 363 and ors N1019 of 2001 ALLSOP J SYDNEY 6 DECEMBER 2001

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 1019 of 2001

BETWEEN: TRILOGY COMPUTER SYSTEMS PTY LIMITED ACN 006 673 123

FIRST APPLICANT

SAMURAI INVESTMENTS LIMITED

SECOND APPLICANT

SUSSEX INVESTMENTS LIMITED

THIRD APPLICANT

ERROL STANLEY WILLIAMS

FOURTH APPLICANT

MUSASHI LIMITED

FIFTH APPLICANT

AND: CTI COMMUNICATIONS LIMITED ACN 071 781 363

FIRST RESPONDENT

PETER FRITZ

SECOND RESPONDENT

MICHEAL JOHN BARRACLOUGH

THIRD RESPONDENT

BRYAN FRANCIS CURTIN

FOURTH RESPONDENT

DAVID PETER BEDDALL

FIFTH RESPONDENT

JUDGE: ALLSOP J

DATE OF ORDER: 6 DECEMBER 2001

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The Second to Fifth Applicants provide security for the costs of the Second to Fifth Respondents by way of bank guarantee in a form that is satisfactory to the Registrar of the Court, in the sum of $300,000.00 to be provided by the First Applicant on or before 8 December 2001. 2. As a condition of the provision of such bank guarantee, the reasonable costs of the First or Second to Fifth Applicants including costs incurred by the First Applicant in providing the bank guarantee for which the second to fifth Applicants may be liable up to a sum of $10,000 per annum be treated as a reasonable disbursement in the proceeding for taxation purposes provided that such sum is actually expended and that in any taxation of costs payable in these proceedings that such sum be so treated. 3. That the Second to Fifth Applicants pay half of the costs of the Second to Fifth Respondents of the motion filed on 13 November 2001. 4. That the other half of the costs of the Second to Fifth Respondents of to such motion be treated as the Second to Fifth Respondents' costs in the cause. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.