Ingot Capital Investments Pty Ltd & Ors v Macquarie Equity Capital Markets Ltd & Ors [2002] NSWSC 609

New South Wales Supreme Court

CITATION : Ingot Capital Investments Pty Ltd & Ors v Macquarie Equity Capital Markets Ltd & Ors [2002] NSWSC 609 revised - 19/07/2002 CURRENT JURISDICTION: Equity Division Commercial List FILE NUMBER(S) : SC 50169/01 HEARING DATE(S) : 23 May 2002 Final written submissions 18 June 2002 JUDGMENT DATE : 9 July 2002

Ingot Capital Investments Pty Ltd (First Plaintiff/Respondent) AOIT Ltd (Second Plaintiff/Respondent) ASC Pty Ltd (Third Plaintiff/Respondent) Australian Opportunities Investment Trust PLC (Fourth Plaintiff/Respondent) Eastern Estates Securities Ltd (Fifth Plaintiff/Resopndent) PARTIES : Ingot Capital Management Ltd (Sixth Plaintiff/Respondent) Macquarie Equity Capital Markets Ltd (First Defendant/Applicant) Macquarie Equities Ltd (Second Defendant/Applicant) Macquarie Bank Ltd (Third Defendant/Applicant) Jonathan Paul Beach (Fifth Defendant/Applicant) John Trowbridge Consulting Pty Ltd (Twelfth Defendant/Applicant) Andrew Mutton and the Persons in New South Wales Listed in Schedule "A" to the Summons (Fourteenth Defendant/Applicant) JUDGMENT OF : Bergin J

S Epstein SC leading D R Sibtain (Plaintiffs/Respondents) Dr A Bell (First, Second and Third Defendants/Applicants) COUNSEL : K Andronos (Fifth Defendant/ Applicant) E A Collins (Twelfth Defendant/Applicant) R A Dick (Fourteenth Defendant/Applicant) Deacons (First to Sixth Plaintiffs/Respondent) Mallesons Stephen Jaques (First to Third Defendants/Applicants) SOLICITORS : Colin Biggers & Paisley (Fifth Defendant/ Applicant) Minter Ellison (Twelfth Defendant/Applicant) Freehills (Fourteenth Defendant/Applicant) CATCHWORDS : [SECURITY FOR COSTS] - Three of six plaintiffs resident outside the jurisdiction - One of six plaintiffs not impecunious - Whether jursidiction to make orders for security against other impecunious plaintiffs - Whether impecuniosity caused by the defendants - No claim that security would stultify litigation - Aim to provide adequate protection to defendants without unfairly prejudicing the plaintiffs. Australian Security and Investment Commission Act 1989 (Cth) Companies Act 1989 (UK) LEGISLATION CITED : Corporations Act 2001 (Cth) Supreme Court Rules 1970 (NSW) Trade Practices Act 1974 (Cth) ANZ Executors & Trustee Co Ltd v Qintex Australia Ltd (1990) 2 ACSR 676 BPM Pty Ltd v HPM Pty Ltd, WASC, unreported, Full Court, Anderson, Kennedy & Ipp JJ, 7 April 1996 Drake v Hunter Douglas Ltd (1983) 8 ACLR 39 Drumdurno Pty Ltd & Ors v Braham & Ors (1982) 42 ALR 563 Electrona Carbide Industries Pty Ltd v The Tasmanian Government Insurance Board (1985) 3 ACLC 702 George Stack & Anor v Brisbane City Council Ors [1996] 71 FCR 523 GPI Leisure Corporation Ltd v Yuill, NSWSC, unreported, Young J, 22 April 1998 Harpur v Ariadne Australia Ltd (1984) 8 ACLR 835 Idoport Pty Ltd & Anor v National Australia Bank Ltd; Idoport Pty Ltd & Market Holdings Pty Ltd v Donald Robert Argus; Idoport Pty Ltd "JMG" v National Australia Bank Ltd [2001] NSWSC 744 CASES CITED : Interwest Ltd v Tricontinental Corporation Ltd (1991) 5 ACSR 621 John Bishop (Caterers) Ltd & Anor v National Union Bank Ltd & Ors [1973] 1 All ER 707 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 Life Airbag Company of Australia Pty Ltd v Life Airbag Company (New Zealand) Ltd, FCA 545, unreported, Branson J, 22 May 1998 Pearson and Anor v Naydler and Anor [1977] 3 All ER 531 Rajski v Computer Manufacture & Design Pty Ltd (1982) 2 NSWLR 443 Ravi Nominees Pty Ltd v Phillips Fox (1992) 10 ACLC 1313 Schmidt v Bank of New Zealand Ltd [1991] 2 NZLR 60 Slazengers Ltd & Ors v Seaspeed Ferries Ltd [1988] 1 WLR 221 Winthrop v Royal Exchange Assurance Co (1755) 1 Dick 282; 21 ER 277 DECISION : Security ordered; See para [103]