CIP Group Pty Ltd v So (No 4) [2024] FCA 1372

Federal Court of Australia

CIP Group Pty Ltd v So (No 4) [2024] FCA 1372 File number: QUD 93 of 2022

Judgment of: DERRINGTON J

Date of judgment: 4 December 2024

Catchwords: PRACTICE AND PROCEDURE – application for security for costs – where application brought six months after matter set down for trial – where existing undertaking to indemnify against costs needs to be considered – where undertaking is inadequate – where other persons who stand behind company and who may benefit from the litigation did not expose their assets to the risk of a cost order – reduced amount of security ordered

Legislation: Corporations Act 2001 (Cth) Federal Court of Australia Act 1976 (Cth) Federal Court Rules 2011 (Cth)

Cases cited: Acohs Pty Ltd v Ucorp Pty Ltd (2006) 155 FCR 181 Austcorp Project Number 20 Pty Ltd v LM Investment Management Ltd (in liq) [2014] FCA 1371 Australian Equity Investors, An Arizona Limited Partnership v Colliers International (NSW) Pty Limited [2012] FCAFC 57 Bartter Enterprises Pty Limited v PFJV Pty Limited [2024] QSC 87 Brimaud v Honeysett Instant Print Pty Ltd (1988) 217 ALR 44 Brundza v Robbie & Co (No 2) (1952) 88 CLR 171 Capital Webworks Pty Ltd v Adultshop.com.Limited [2008] FCA 40 Carpenter v Pioneer Park Pty Ltd (in liq) (2004) 51 ACSR 299 Carrano Investment Holding Pty Ltd v Siennamia Investments Pty Ltd [2022] NSWCA 262 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 CIP Group Pty Ltd v So (2022) 164 ACSR 566 CIP Group Pty Ltd v So (No 3) [2023] FCA 518 Cruz Industries Pty Ltd v Sunny Girl Pty Ltd [2017] FCA 1343 Equity Access Limited v Westpac Banking Corporation [1989] ATPR ¶40-972 Fitzpatrick v Isaacs [2024] FCA 1187 General Trade Industries Pty Ltd (in liquidation) v AGL Energy Limited (No 2) [2023] FCA 556 General Trade Industries Pty Ltd (in liquidation) v AGL Energy Limited [2020] FCA 1562 Gumm v Commissioner of Taxation [2024] FCA 71 Harpur v Ariadne Australia Ltd (No 2) [1984] 2 Qd R 523 Hill v Zhang [2019] FCA 1562 Hopkins v AECOM Australia Pty Ltd (No 5) [2015] FCA 1228 Intercraft Cabinets Pty Ltd v Sampas Pty Ltd (1997) 18 WAR 306 Jalpalm Pty Ltd v Hamilton Island Enterprises Pty Ltd (1995) 16 ACSR 532 Madgwick v Kelly (2013) 212 FCR 1 Peters v Coastace Pty Ltd (2006) 57 ACSR 241 PPK Willoughby Pty Ltd v Baird [2019] NSWCA 48 Southern Cross Exploration NL v Fire & All Risks Insurance Co Ltd (1985) 1 NSWLR 114 United Commercial Projects Pty Ltd v PHHH Investments No 2 Pty Ltd [2019] VSCA 192 Austin & Black's Annotations to the Corporations Act (LexisNexis)