Citrus Queensland Pty Ltd v Sunstate Orchards Pty Ltd (No 5) [2006] FCA 1672

FEDERAL COURT OF AUSTRALIA

Citrus Queensland Pty Ltd v Sunstate Orchards Pty Ltd (No 5) [2006] FCA 1672

SECURITY FOR COSTS – whether respondents are entitled to an order for security for costs – guidelines which courts typically take into account in determining such applications – whether Court satisfied that order for security is a proper exercise of discretion – security previously ordered up to the first day of the trial – whether circumstances have changed – first and third applicants corporations which cannot meet a costs order – second applicant and his wife beneficiary of litigation – whether award of costs would stultify litigation – whether security for future costs should be ordered where trial part heard SECURITY FOR COSTS – trial adjourned part heard to resume in May 2007 – whether, in the circumstances, respondents are entitled to an order for security for costs for 10 days trial just heard – previous unsuccessful application for costs in respect of those trial days – whether facts distinguish case from the usual circumstance where security is awarded in respect of prospective costs – whether oppressive to require security for costs to be paid for part of trial already heard SECURITY FOR COSTS – quantum – whether further preparation costs for part heard matter should be given where hearing to be adjourned for over five months – when security for costs payable Held: No security for costs ordered in respect of costs already incurred. Security for costs awarded in respect of adjourned hearing of seven days and associated preparation in the amount of $75 000 payable by 5 January 2007.

Corporations Act 2001 (Cth) s 1335 Federal Court of Australia Act 1976 s 56

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