Reinsurance Australia Corporation Limited v HIH Casualty and General Insurance Ltd (in liquidation) [2003] FCA 803

FEDERAL COURT OF AUSTRALIA

Reinsurance Australia Corporation Limited v HIH Casualty and General Insurance Ltd (in liquidation) [2003] FCA 803 SECURITY FOR COSTS –reason to believe that the corporation will be unable to pay the costs of the defendant - factors to consider - present financial position and future financial position - prima facie case for security where evidence of company's reserves is not conclusive - quantum of security WORDS AND PHRASES – 'credible testimony'

Corporations Act 2001(Cth) – s 1335 Allstate Life Insurance Co v Australia and New Zealand Banking Group Ltd (1995) 134 ALR 187 applied Beach Petroleum NL & Anor v Johnson (1992) 7 ACSR 203 applied Brundza v Robbie & Co (1952) 88 CLR 171 applied Bryan E Fencott and Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497applied Buckley v Bennell Design and Constructions Pty Ltd (1974) 1 ACLR 301 applied Charlwood Industries Pty Limited v Cubitt [1995](unreported FCA, Gummow J, 15 March 1995) applied Churchills Ltd v Pilcher (1940)57 WN (NSW) 109 applied Concrete Constructions Pty Ltd v Dalma Formwork Pty Ltd (Administrator Appointed) [1999] NSWCA 16 considered Costa Vraca v Bell Regal Pty Ltd [2003] FCA 65considered Deangrove Pty Ltd v Buckby [2002]FCA 1544 considered Equity Access Ltd v Westpac Banking Corporation & Ors (1989) ATPR 40-972considered Eslea Holdings Ltd (formerly IPEC Holdings Ltd) v Butts (1986) 6 NSWLR 175applied Everest Colonial Pty Ltd v Ice Creameries of Australia Pty Ltd (unreported FCA, Goldberg J, 27 March 1997) considered Farmitalia Carlo Erba SrL v Delta West Pty Limited (unreported FCA, Heerey J, 4 March1993) applied FFE Minerals Australia Pty Ltd v Mining Australia Pty Ltd [2000]WASCA 69 considered Greenfields Coal Co Ltd v Mineral Resources Corporation and Ors (unreported FCA, Goldberg J, 28 November 1997) considered Idoport Pty Limited & Anor v National Australia Bank Limited & 8 Ors [2001] NSWSC 744 considered Set Technologies Pty Ltd v Lewis and Ors (1992) 10 ACSR 61 considered Warren Mitchell Pty Ltd v Australian Maritime Officers' Union (1993) 12 ACSR 1considered Weily's Quarries v Devine Shipping Pty Ltd (1994) 14 ACSR 186 applied Willey v Synan (1935) 54 CLR 175 distinguished Reinsurance Australia Corporation Limited (ACN 061 215 601) & Monegasque De Reassurances S.A.M. v HIH Casualty and General Insurance (In Liquidation) (ABN 47 008 482 291), AIG Europe (UK) Ltd and New Hampshire INSURANCE Company, Heath Group Limited (formerly CE Health plc), Heath Insurance Broking Ltd formerly CE Heath (Insurance Broking) Ltd and Heath North America and Special Risks Ltd, Ice Media Limited and Premier Media Limited & J P Morgan Chase Bank (formerly known as The Chase Manhattan Bank, formerly known as Chemical Securities Inc) N 827 of 2002 JACOBSON J 1 AUGUST 2003 SYDNEY