Laith & Fadi Investments Pty Ltd v Fogo Brazilia Holdings Pty Ltd [2024] NSWSC 1508

Supreme Court New South Wales

Medium Neutral Citation: Laith & Fadi Investments Pty Ltd v Fogo Brazilia Holdings Pty Ltd [2024] NSWSC 1508 Hearing dates: 30 September 2024 Date of orders: 28 November 2024 Decision date: 28 November 2024 Jurisdiction: Equity - Commercial List Before: McGrath J Decision: Plaintiffs to provide further security for the defendants' costs Catchwords: COSTS — security for costs — representative proceedings — where proceedings funded from the outset by litigation funder and funding agreement terminated by funder on the basis of alleged breaches of it by the lead plaintiffs — where lead plaintiffs suing for the benefit of others — impecuniosity of the lead plaintiffs and inability to meet an adverse costs order — no causal connection between plaintiffs' impecuniosity and defendants' conduct — whether proceedings likely to be stultified if an order for security is made — lead plaintiffs' failure to provide precise information of financial position of those standing to benefit from successful outcome of the litigation — insufficient evidence upon which to base finding of inability as opposed to unwillingness of group members to contribute towards an order for security — risk of injustice to the defendants in incurring substantial costs without having appropriate security — quantum of security determined adopting broad brush approach — HELD — security ordered to be paid in instalments Legislation Cited: Civil Procedure Act 2005 (NSW) ss 67, 98, 168, 169, 181 Competition and Consumer Act 2010 (Cth) ss 51AD, 51ACB, 82, 87, 236, 243; Sch 2 – Australian Consumer Law, ss 18, 21 Corporations Act 2001 (Cth) s 1335 Federal Court of Australia Act 1976 (Cth) ss 43(1A), 56 Legal Profession Uniform Law 2014 (NSW) ss 180, 181 Uniform Civil Procedure Rules 2005 (NSW) r 42.21 Cases Cited: Abbott v Zoetis Australia Pty Ltd (No 2) [2019] FCA 462; (2019) 369 ALR 512 Bell Wholesale Co Limited v Gates Export Corporation (1984) 2 FCR 1; [1984] FCA 34 Bray v F Hoffman-La Roche Ltd (2003) 130 FCR 317; [2003] FCAFC 153 Broadway Plaza Investments v Broadway Plaza Pty Ltd; In the matter of Combined Projects (Arncliffe) Pty Ltd [2019] NSWSC 1082 Capic v Ford Motor Company (No 2) [2016] FCA 1178 Carrano Investment Holding Pty Ltd v Siennamia Investments Pty Ltd [2022] NSWCA 262 Dae Boong International Co Pty Ltd v Gray [2009] NSWCA 11 De Jong v Carnival PLC [2016] NSWSC 347 Di Francesco v Pioneer Energy Pty Limited (No 2) [2014] NSWSC 1923 Eades v Endeavour Energy [2018] NSWSC 801 Flip Out Thornton Pty Ltd v Flip Out – Trampoline Arena Franchises Pty Ltd [2023] NSWSC 1094 General Trade Industries Pty Ltd (in liquidation) v AGL Energy Limited (No 2) [2023] FCA 556 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd [2002] NSWSC 609 Its Eco Pty Ltd v BPS Financial Ltd [2022] FCA 842 Jazabas Pty Ltd v Haddad (2007) 65 ACSR 276; [2007] NSWCA 291 Live Board Holdings v Cody Live Pty Ltd [2017] NSWCA 302 Louise Haselhurst v Toyota Motor Corp Australia Ltd t/as Toyota Australia [2020] NSWSC 1607 LRSM Enterprise Pty Ltd v Zurich Australian Insurance Limited [2014] NSWCA 88 Madgwick v Kelly (2013) 212 FCR 1; [2013] FCAFC 61 Metro Environmental Logistics Pty Ltd v Newcastle Port Corporation (No 5) [2024] NSWSC 714 Pioneer Park Pty Ltd (in liquidation) v Australia and New Zealand Banking Group Ltd (2007) 65 ACSR 383; [2007] NSWCA 344 Porter v Gordian Runoff Limited [2004] NSWCA 171 Category: Costs Parties: Laith & Fadi Investments Pty Ltd (First Plaintiff) Laith Karim Hana (Second Plaintiff) Fogo Brazilia Holdings Pty Ltd (First Defendant) Ian David Dresner (Second Defendant) Hilton Seskin (Third Defendant) Lazarus Legal Group Pty Ltd (Fourth Defendant) Representation: Counsel: N Li (Plaintiffs) A Vial (First and Second Defendants) S Sykes (Third Defendant) T Epstein (Fourth Defendant)