Capital Options (Aust) Pty Ltd v Hazratwala, in the matter of Weststate Consortium Pty Ltd (in liq) (No 2) [2023] FCA 775

Federal Court of Australia

Capital Options (Aust) Pty Ltd v Hazratwala, in the matter of Weststate Consortium Pty Ltd (in liq) (No 2) [2023] FCA 775 File number: QUD 368 of 2022

Judgment of: SARAH C DERRINGTON J

Date of judgment: 7 July 2023

Catchwords: COSTS – application for indemnity costs – where there has been a finding of abuse of process – where there has been a finding of ulterior purpose – whether seriousness of finding justified indemnity costs order – application upheld COSTS – application for costs order against non-party – whether costs should be ordered against non-party director of company – where director stood to gain from proceedings – where director's conduct of litigation was unreasonable and improper – application upheld

Legislation: Federal Court of Australia Act 1976 (Cth) s 43

Cases cited: Baillieu Knight Frank (NSW) Pty Ltd v Ted Manny Real Estate Pty Ltd (1992) 30 NSWLR 359 Capital Options (Aust) Pty Ltd v Hazratwala, in the matter of Weststate Consortium (in liq) [2023] FCA 458 Citrus Queensland Pty Ltd v Sunstate Orchards Pty Ltd (No 10) [2009] FCA 498 FPM Constructions v Council of the City of Blue Mountains [2005] NSWCA 340 FPM Constructions Pty Ltd v Council of the City of Blue Mountains [2005] NSWCA 340 Hardingham v RP Data Pty Limited (Third Party Costs) [2023] FCA 480 Knight v FP Special Assets Ltd [1992] HCA 28; 174 CLR 178 LFDB v MS S M (No 2) [2018] FCA 2062 Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs v Mukiza [2022] FCAFC 105 PMWorks Pty Ltd v Management Services Australia Pty Ltd (t/as Peak Performance PM) [2018] NSWCA 168 Roberts-Smith v Fairfax Media Publications Pty Limited (No 42) [2023] FCA 750 Vestris v Cashman (1998) 72 SASR 449