Forge Group Ltd (In Liq) (Receivers and Managers Appointed) v Hutchinson (No 2) [2021] NSWSC 370

Supreme Court New South Wales

Medium Neutral Citation: Forge Group Ltd (In Liq) (Receivers and Managers Appointed) v Hutchinson (No 2) [2021] NSWSC 370 Hearing dates: 29 March, 1 and 9 April 2021 Decision date: 13 April 2021 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Further security ordered in sum of $10 million. Catchwords: COSTS – security for costs – security hitherto given of $2.45 million – application for further security by director defendants – complex proceedings – set down for 60 days commencing 26 July 2021 – no dispute that further security should be given – dispute as to quantum – where further $17.4 million security sought – where ten director defendants represented by six separate law firms and counsel – where duplication of representation said to arise from potential conflicts of interest between director defendants – whether security should be provided for six sets of costs – where parties earlier entered agreement for security described in respect of three tranches of work – whether director defendants should have further security for those tranches of work – whether there has been change of circumstances warranting such further security – whether assumptions adopted by expert costs assessor unrealistic Legislation Cited: Civil Liability Act 2002 (NSW) Cases Cited: Andrianakis v Uber Technologies Inc (Ruling No 1) [2019] VSC 850 Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd [2006] NSWSC 583 In re Lyell [1941] VLR 207 Remm Construction (SA) Pty Ltd v Allco Newsteel Pty Ltd (1992) 57 SASR 180 Statham v Shephard (No 2) (1974) 23 FLR 244 TTM Investment Corporation Pty Ltd v Hua Chang Pty Ltd [2020] NSWSC 294 Category: Procedural rulings Parties: Forge Group Limited (in Liq) (Receivers and Managers Appointed) (First Plaintiff) Forge Group Power Pty Ltd (in Liq) (Receivers and Managers Appointed) (Second Plaintiff) Peter Geoffrey Hutchinson (First Defendant) Andrew Blair Ellison (Second Defendant) Marcello Davide Cardaci (Third Defendant) Gregory Lewis McRostie (Fourth Defendant) David Anthony Craig (Sixth Defendant) Neil Siford (Seventh Defendant) Kevin Thomas Gallagher (Eighth Defendant) David Michael Simpson (Ninth Defendant) Gregory Knowles Kempton (Tenth Defendant) John Peter O'Connor (Eleventh Defendant) Representation: Counsel: W A D Edwards with M O'Brien (Plaintiffs) J R J Lockhart SC with A Gomez (Ms Gomez alone on 1 and 9 April 2021) (First to Fourth and Sixth to Eleventh Defendants)