Links Golf Tasmania Pty Ltd v Sattler (No 2) [2012] FCA 1271

FEDERAL COURT OF AUSTRALIA

Links Golf Tasmania Pty Ltd v Sattler (No 2) [2012] FCA 1271 Citation: Links Golf Tasmania Pty Ltd v Sattler (No 2) [2012] FCA 1271

Parties: PETER WOOD and JUSTIN HETREL v LINKS GOLF TASMANIA PTY LTD (ACN 096 711 661) LINKS GOLF TASMANIA PTY LTD (ACN 096 711 661) v RICHARD SATTLER and R.G. SATTLER NOMINEES PTY LTD (ACN 009 525 348)

File numbers: VID 933 of 2009 VID 204 of 2010

Judge: JESSUP J

Date of judgment: 16 November 2012

Catchwords: COSTS – derivative proceeding under s 237 of Corporations Act 2001 (Cth) – plaintiffs given leave to commence proceedings on behalf of company – interlocutory order under s 242 of Corporations Act 2001 requiring company to pay plaintiffs' reasonable costs in bringing proceedings on behalf of company – company substantially unsuccessful in those proceedings – company ordered to pay 85% of defendants' costs – whether order should be varied requiring plaintiffs to pay their own solicitor/client costs in place of company pursuant to s 242(a) of Corporations Act 2001 (Cth) – matters relevant to exercise of discretion – whether costs unreasonably inflated or claim unmeritorious - where plaintiffs claim that proceedings conducted in accordance with legal advice – where legal advice disclosed difficulties with certain grounds of claim – where certain grounds of claim abandoned in course of proceedings – whether plaintiffs should pay party/party costs of successful defendants in proceeding conducted on behalf of the company pursuant to s 242(c) of Corporations Act 2001 (Cth) – jurisdiction of court to order non-party to pay costs in place of party to a proceeding - matters relevant to exercise of discretion under s 242 of Corporations Act 2001 (Cth) – whether costs liability should be absolute or proportional