HC Foods Pty Ltd v Carmichael [2020] FCA 1693

Federal Court of Australia

HC Foods Pty Ltd v Carmichael [2020] FCA 1693 File number: WAD 135 of 2020

Judgment of: COLVIN J

Date of judgment: 20 November 2020

Catchwords: PRACTICE AND PROCEDURE - application for security for costs - whether applicant's ability to meet costs order if unsuccessful should be evaluated by reference to ability to meet costs in ordinary course of business - whether risk that applicant will be unable to pay costs order - whether applicant's claim has weak prospects of success - order by way of partial security made

Cases cited: All Class Insurance Brokers Pty Ltd (in liq) v Chubb Insurance Australia Limited [2020] FCA 840

Division: General Division

Registry: Western Australia

National Practice Area: Commercial and Corporations

Sub-area: Commercial Contracts, Banking, Finance and Insurance

Number of paragraphs: 17

Date of hearing: 20 November 2020

Counsel for the Applicant: Mr T Lethbridge

Solicitor for the Applicant: Croftbridge

Counsel for the Respondents: Mr D Tassone

Counsel for the Respondents: Williams & Hughes

ORDERS WAD 135 of 2020

BETWEEN: HC FOODS PTY LTD (ACN 141 276 753) Applicant

AND: KERRY DAMIAN CARMICHAEL First Respondent

CARMICHAEL DISTRIBUTORS PTY LTD (ACN 606 256 204) Second Respondent

order made by: COLVIN J DATE OF ORDER: 20 NOVEMBER 2020

THE COURT ORDERS THAT:

1. Within 30 days, the applicant provide security for the respondents' costs of the action by paying the amount of $30,000 into Court 2. The action be stayed pending compliance with order 1. 3. There be liberty to apply for the action to be dismissed in the event of a failure to comply with order 1. 4. The applicant pay the respondents' costs of the application for security to be assessed if not agreed. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.