Worldwide Coatings IP Pty Limited v Freeworld Coatings Australia Pty Limited [2009] NSWDC 314

New South Wales District Court

CITATION: Worldwide Coatings IP Pty Limited v Freeworld Coatings Australia Pty Limited [2009] NSWDC 314

HEARING DATE(S): 20 November 2009, 8 December 2009

JUDGMENT DATE: 8 December 2009

EX TEMPORE JUDGMENT DATE : 26 November 2009

JURISDICTION: District Court - Civil

JUDGMENT OF: Sidis DCJ

1) The plaintiff is to provide security for the defendant's costs by no later than 4:00pm on 11 December 2009 by paying into Court the sum of $70,000 or by delivering to the Registrar of the Court a bank guarantee for the payment of that sum issued by an Australian Bank. 2) In the event that security is not provided as ordered, the defendant shall be at liberty to apply to the Court in Sydney to have the plaintiff's claim dismissed. DECISION: 3) The defendant may apply on 7 days notice to vary the amount of the security provided. 4) The affidavits and other material provided in respect of the motion are returned. 5) It is noted that the matter is listed for directions on 21 December 2009. 6) The plaintiff is to pay the defendant's costs of the motion.

CATCHWORDS: Security for costs - Proportionality - Overstatement of expected costs - Impecuniosity of plaintiff company - Defendant not entitled to security for costs of substantial cross-claim

Corporations Act 2001 (Cth) LEGISLATION CITED: Trade Practices Act 1974 (Cth) Uniform Civil Procedure Rules 2005

CASES CITED: Sydmar Pty Limited v Statewide Developments Pty Limited 1987 5 ACLC 480

PARTIES: Worldwide Coatings IP Pty Limited (Plaintiff/Respondent) Freeworld Coatings Australia Pty Limited (Defendant/Applicant)