AON Services Aust Pty Ltd v Impact Edge Pty Ltd [2009] NSWDC 76

New South Wales District Court

CITATION: AON Services Aust Pty Ltd v Impact Edge Pty Ltd [2009] NSWDC 76

HEARING DATE(S): 3 April 2009

JUDGMENT DATE: 24 April 2009

JURISDICTION: Civil

JUDGMENT OF: Williams DCJ at 1

DECISION: Cross claimant ordered to provide security for costs, to the satisfaction of the Registrar, in the sum of $60,000. Proceedings on cross-claim stayed until then.

CATCHWORDS: Security for costs - Cross claim - principles

Fiduciary Ltd – v – ­­­­Morningstar Research P/L 2004 NSW SC 664 CASES CITED: Ravi Nominees P/L – v – Phillips Fox BC 9201117 WASC unreported 15/7/92; FPM Construction – v – Blue Mountains City Council 2005 NSWCA 147

AON Services Aust Ltd PARTIES: Plaintiff/cross defendant Impact Edge Pty Ltd T/as Termo Hotel Defendant/ cross claimant

FILE NUMBER(S): 3958 of 2007

COUNSEL: Mr J Sleight for AON Mr P King for Impact

SOLICITORS: Clinch Long & leatherbarrow Cropper Parkhill

Judgement on Notice of Motion for Security for Costs on the Cross Claim

1. In March 2003, Impact Edge P/L (Impact) consulted with AON Services Aust Ltd (AON ) preparatory to the purchase of the Termo Hotel, Albury in regard to various insurances that might be required. The Hotel was purchased for $1.2 million being $597,000 goodwill, $153,000 licence and $448,000 plant and equipment.

2. On 12/1/05, the Hotel burnt down. Apparently, AON assisted Impact in proceedings against CGU Insurance. Those proceedings were settled for $900,000, but exactly when that occurred is not known.

3. On 6/7/07, AON filed a Statement of Claim in the District Court seeking payment of 3 invoices for services to Impact, totalling $60,614.79. A defence was filed in 22/11/07 disputing any amount beyond $10,000 and various other matters. AON knew by January 2008 that Impact was also going to file a Cross-Claim. Despite some initial slowness, this was done on 22/04/08.