Harrington Services Pty. Ltd (In Liquidation) v. Harrington & Anor. [2003] NSWCA 89

New South Wales Court of Appeal

CITATION : Harrington Services Pty. Ltd (In Liquidation) v. Harrington & Anor. [2003] NSWCA 89 HEARING DATE(S) : 7 April 2003 JUDGMENT DATE : 22 April 2003

JUDGMENT OF : Hodgson JA at 1 DECISION : 1. Orders 5 and 6 made by Palmer J on 19 February 2003 stayed until further order. 2. If within 7 days the Directors undertake to the Company not to pursue their cross-appeal if security is not given, order: (a) that the Company and Liquidators give security for the Directors' costs of the appeal and do so by way of the Liquidators undertaking to the Directors to be personally responsible for any costs ordered against the Company (such undertaking not to affect any indemnity of the Liquidators from the Company); (b) that the appeal be stayed until the Liquidators give that undertaking; (c) that the stay in Order 1 be discharged if the Liquidators do not give that undertaking within 7 days after receiving the Directors' undertaking. 3. Costs of both applications to be costs in the appeal. 4. Subject to the effect of Order 2, appeal expedited.

CATCHWORDS : APPEALS - Stay of orders - Security for costs - Need for 'special circumstances' - CORPORATIONS - Liquidators - Interest in proceedings - Liability for costs. LEGISLATION CITED : Supreme Court Rules, Pt.5 r.16 Corporations Act 2001 (Cth) s.1335 Chris Poulsen Insurance Agencies Pty. Ltd. v. National Mutual Life Association, Supreme Court of Tasmania, 17/7/98 J & M O'Brien Enterprises Pty. Ltd v. Shell Company of Australia (1983) 7 ACLR 790 CASES CITED : Knight v. S.P. Special Assets Ltd. (1991) 174 CLR 178 Mahaffey v. Belar Pty. Ltd., Queensland Court of Appeal, 16/3/99 Strata Consolidated (Australia) Pty. Ltd. v. Bradshaw [2000] NSWCA 114 Uptown Sydney Development Corporation Pty. Ltd v. Bank of New Zealand (No.1) (1993) 11 ACSR 300 Harrington Services Pty. Ltd. (In Liquidation) - claimant PARTIES : Robert William Whitton and David John Frank Lombe - claimants Kenneth Harrington and Jacqueline Dorothy Harrington - opponents FILE NUMBER(S) : CA 40174/03 COUNSEL : Mr. J.S. Wheelhouse for claimants Mr. B. Monotti with Mr. M. Dawson for opponent SOLICITORS : Coudert Brothers, Sydney for claimants Tress Cocks & Maddox, Sydney for opponent