General Trade Industries Pty Ltd (in liquidation) v AGL Energy Limited (No 2) [2023] FCA 556

Federal Court of Australia

General Trade Industries Pty Ltd (in liquidation) v AGL Energy Limited (No 2) [2023] FCA 556 File number: QUD 255 of 2020

Judgment of: DERRINGTON J

Date of judgment: 2 June 2023

Catchwords: PRACTICE AND PROCEDURE – security for costs – applicant in proceedings being wound up – whether order for security would stifle action – applicant established that those who stand behind it and those who would benefit from the litigation are also without means – consideration of what needs to be shown of those who stand behind company or who would benefit from the litigation – whether reasonable to require those who stand behind the company to provide security – an order for security would stifle the proceedings – merits of the proceedings considered – application for security refused

Legislation: Competition and Consumer Act 2010 (Cth) Corporations Act 2001 (Cth) Evidence Act 1995 (Cth) Federal Court of Australia Act 1976 (Cth) Federal Court Rules 2011 (Cth) Uniform Civil Procedure Rules 2005 (NSW)

Cases cited: Acohs Pty Ltd v Ucorp Pty Ltd (2006) 155 FCR 181 Adelaide (SA Pools & Spa) Manufacturing and Installation Pty Ltd v Westcourt General Insurance Brokers Pty Ltd [2016] SASC 60 All Class Insurance Brokers Pty Ltd (in liquidation) v Chubb Insurance Australia Limited [2020] FCA 840 Allstate Life Insurance Co v Australia and New Zealand Banking Group Ltd (No 6) (1996) 64 FCR 79 Anderson v Canaccord Genuity Financial Ltd [2022] NSWCA 168 Ariss v Express Interiors Pty Ltd (in liq) [1996] 2 VR 507 Austcorp Project Number 20 Pty Ltd v LM Investment Management Ltd (in liq) [2014] FCA 1371 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 214 CLR 51 Australian Competition and Consumer Commission v Quantum Housing Group Pty Ltd (2021) 388 ALR 577 Australian Competition and Consumer Commission v Samton Holdings Pty Ltd (2002) 117 FCR 301 Australian Equity Investors, An Arizona Limited Partnership v Colliers International (NSW) Pty Limited [2012] FCAFC 57 Ballard v Brookfield Australia Investments Ltd [2012] NSWCA 434 Bell Wholesale Co Ltd v Gates Export Corporation (1984) 2 FCR 1 BPM Pty Ltd v HPM Pty Ltd (1996) 131 FLR 339 Bray v F Hoffman-La Roche Ltd (2003) 130 FCR 317 Bryan E Fencott & Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497 Cameron's Unit Services Pty Ltd v Kevin R Whelpton & Associates (Australia) Pty Ltd (1986) 13 FCR 46 Capic v Ford Motor Company (No 2) [2016] FCA 1178 Carter v Mehmet t/as ATF Ian G Mehmet Testamentary Trust [2021] NSWCA 32 Chang v Comcare Australia [1999] FCA 1677 Chen v Golden Land Enterprises Pty Ltd (No 2) [2022] NSWSC 985 Chief Disruption Officer Pty Ltd as Trustee for the McDonald Family Trust v Michel, in the matter of Laava ID Pty Ltd [2022] FCA 148 Chopsonion Pty Ltd (Controllers Appointed) v Watts Meat Machinery Pty Ltd [2022] FCA 1309 Cosdean Investments Pty Ltd v Football Federation Australia Limited (No 2) [2007] FCA 163 Cowell v Taylor (1885) 31 Ch D 34 Dae Boong International Co Pty Ltd v Gray [2009] NSWCA 11 Duke Holdings Ltd (in liq) v Duke Group Ltd (in liq) [2009] SASC 245 Environmental Defendants Office (Tas) Inc v Chipman [2003] TASSC 72 Epping Plaza Fresh Fruit & Vegetables Pty Ltd v Bevendale Pty Ltd [1999] 2 VR 191 Equititrust Ltd v Tucker [2020] QSC 269 Equity Access Ltd v Westpac Banking Corporation (1989) ATPR ¶40-972 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Fiduciary Ltd v Morningstar Research Pty Ltd (2004) 208 ALR 564 General Trade Industries Pty Ltd (in liquidation) v AGL Energy Limited [2020] FCA 1562 Gold Village Pty Ltd (in liq) v Sharma [2021] VSC 600 Green (as liquidator of Arimco Mining Pty Ltd) v CGU Insurance Ltd (2008) 67 ACSR 105 Grocon Group Holdings Pty Ltd v Infrastructure NSW (2020) 149 ACSR 112 Harpur v Ariadne Australia Ltd [1984] 2 Qd R 523 Health & Life Care Ltd (recs and mgrs apptd) v Price Waterhouse (1993) 11 ACSR 326 Health Information Pharmacy Franchising Pty Ltd v Khoo [2010] FCA 438 Hells Angels Motorcycle Corporation (Australia) Pty Ltd v Redbubble Ltd [2016] FCA 530 Hill v Zhang [2019] FCA 1562 Hopkins v AECOM Australia Pty Ltd (No 5) [2015] FCA 1228 Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744 Imagecolor (SA) Pty Ltd (in liq) v Haslam [2002] SASC 200 J & M O'Brien Enterprises Pty Ltd v Shell Co of Australia Ltd (No 2) (1983) 70 FLR 261 Jalpalm Pty Ltd v Hamilton Island Enterprises Pty Ltd (1995) 16 ACSR 532 Jalpalm Pty Ltd v Hamilton Island Enterprises Pty Ltd [1995] FCA 381 Jazabas Pty Ltd v Haddad (2007) 65 ACSR 276 Jeffcott Holdings Ltd v Paior (1996) 15 ACLC 28 Jenyns v Public Curator (Qld) (1953) 90 CLR 113 Kavcor Pty Ltd (in liq) v Kavanagh [2005] NSWSC 1163 KDL Building Pty Ltd v Mount [2006] NSWSC 474 Kelly v MIS Funding No 1 Pty Ltd (2012) 300 ALR 675 Knight v Beyond Properties Pty Ltd [2005] FCA 764 Kordovoulos v Dixon-Hughes [2022] NSWCA 110 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 Live Board Holdings Ltd v Cody Live Pty Ltd [2017] NSWCA 302 Longjing Pty Ltd v Perpetual Nominees Ltd [2017] NSWSC 1690 LRSM Enterprise Pty Ltd v Zurich Australian Insurance Ltd [2014] NSWCA 88 Madgwick v Kelly (2013) 212 FCR 1 Mann v Paterson Constructions Pty Ltd (2019) 267 CLR 560 Mecrus Pty Ltd v Industrial Energy Pty Ltd (2015) 327 ALR 523 Mt Nathan Landowners Pty Ltd (in liq) v Morris [2006] QSC 225 Nambour Valley Estates Pty Ltd v Henebery Holdings Investment Trust [2007] QSC 393 Newtrend Pty Ltd v Oceanic Life Limited [1990] WAR 1 Ollerenshaw v The Uniting Church in Australia Property Trust (NSW) [2017] NSWSC 1637 Omega Data Furniture Pty Ltd v Email Furniture Ltd [1995] FCA 641 P S Chellaram & Co Ltd v China Ocean Shipping Co (1991) 102 ALR 321 Pasdale Pty Limited v Concrete Constructions (1995) 131 ALR 268 Passenger Transport Systems Pty Ltd (in liq) v Darwin Radio Taxi Co-operative Ltd [2000] FCA 147 Pearson v Naydler [1977] 1 WLR 899 Phoenix Eagle Co Pty Ltd v Tom McArthur Pty Ltd [2019] WASC 378 Porter v Gordian Runoff Ltd [2004] NSWCA 171 Porter v Gordian Runoff Ltd [2004] NSWCA 69 Power Infrastructure Pty Ltd v Downer EDI Engineering Power Pty Ltd [2010] FCA 1222 Rhema Ventures Pty Ltd v Stenders [1993] 2 Qd R 326 Ryberg Telecommunications Pty Ltd (in liq) v Optus Mobile Pty Ltd [2011] NSWSC 1268 SAS Global Forrestdale Pty Ltd v Samsera Pty Ltd [2010] WASC 309 Schofield v TFS Manufacturing [2020] FCA 1526 Sent v Jet Corporation of Australia Pty Ltd (1984) 2 FCR 201 Shackles v The Broken Hill Proprietary Company Ltd [1996] 2 VR 427 Soul Pattinson Telecommunications Pty Ltd v Subex Americas Inc [2009] FCA 651 Specialised Explosives Blasting & Training Pty Ltd v Huddy's Plant Hire Pty Ltd [2010] 2 Qd R 85 The Airtourer Co-operative Limited v Millicer Aircraft Industries Pty Limited [2004] FCA 1400 Tirops Safety Technology Pty Ltd v Lazer Safe Pty Ltd [2005] WASC 164 Tradestock Pty Ltd v TNT (Management) Pty Ltd (1977) 14 ALR 52 Tyneside Property Management Pty Ltd v Hammersmith Management Pty Ltd [2013] NSWCA 404 Tyneside Property Management Pty Ltd v Hammersmith Management Pty Ltd (2014) 103 ACSR 201 Unified Pty Ltd v Cancer Council Western Australia Inc (No 3) [2011] WASC 161 Union Steel Pty Ltd v Union Steel Investments Pty Ltd [2020] NSWSC 1511 Westonia Earthmoving Pty Ltd v Cliffs Asia Pacific Iron Ore Pty Ltd [2013] WASC 57 Yandil Holdings Pty Ltd v Insurance Company of North America (1985) 3 ACLC 542 Yes Home Loans Pty Ltd v AFIG Wholesale Pty Ltd [2008] NSWSC 1017 Zenith Corp Australia Pty Ltd v Optus Mobile Pty Ltd [2020] NSWSC 1110 Dal Pont, Law of Costs (LexisNexis, 5th ed, 2021)