Lee v Parker (No 2) [2022] FCA 582

Federal Court of Australia

Lee v Parker (No 2) [2022] FCA 582 File number(s): NSD 528 of 2020

Judgment of: HALLEY J

Date of judgment: 20 May 2022

Catchwords: PRACTICE AND PROCEDURE – application for security for costs – whether an order for security would stultify the proceedings brought by natural and corporate plaintiffs – where plaintiffs are impecunious – whether claims by natural plaintiffs are so weak that an order for security for costs should be made – whether it is arguable that a liquidator owes a duty to contingent creditors – whether the natural plaintiffs are contingent creditors of the corporate third plaintiff – whether security for costs should be ordered against the corporate plaintiffs where no order for security for costs against natural persons with overlapping factual and legal claims – public interest in liquidators being scrutinised – application dismissed PRACTICE AND PROCEDURE – application for amendment of start date of claims advanced in amended originating process – whether r 8.21(2) of the Federal Court Rules 2011 (Cth) (FCR) available to avoid limitation periods with respect to subsequent joinder of new plaintiffs – whether an order can be made pursuant to r 1.34 of the FCR dispensing with r 9.05(3) of the FCR – whether an order should be made pursuant to r 1.35 of the FCR, inconsistently with r 9.05(3), that the start date of the proceedings for newly joined plaintiffs be amended to the commencement date – application dismissed

Legislation: Corporations Act 2001 (Cth) ss 180, 181, 1335 Taxation Administration Act 1953 (Cth), Schedule 1, ss 269-10, 269-15, 269-40, 259-45 Federal Court Rules 2011 (Cth) rr 1.34, 1.35, 8.21, 9.05