Agricultural and Rural Finance Pty Ltd v John Edward Atkinson & Ors [2004] NSWSC 437

New South Wales Supreme Court

CITATION : Agricultural and Rural Finance Pty Ltd v John Edward Atkinson & Ors [2004] NSWSC 437 HEARING DATE(S) : 18 May 2004 JUDGMENT DATE : 18 May 2004

JURISDICTION: Equity Division Commercial List JUDGMENT OF : Bergin J DECISION : Security ordered.

CATCHWORDS : [Security for Costs] - Application by cross-defendant to cross-claim against him by former employer - holding company of cross-claimant in receivership and financial statements to 2002 show major decline in finances - notice to produce served on respondent for production of up to date financial statements - not produced - Inference available. LEGISLATION CITED : Corporations Act 2001 CASES CITED : Owners Strata Plan 50530 v Walter Construction Group Ltd [2001] NSWSC 820 PARTIES : Stephen Murray Lloyd (Applicant/Second cross-defendant) Oceania Agriculture Pty Ltd (Respondent/Second cross-claimant) FILE NUMBER(S) : SC 50063/03 COUNSEL : S Hughes (Respondent) SOLICITORS : PD White (Applicant)

IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION COMMERCIAL LIST

BERGIN J

TUESDAY 18 MAY 2004

50063/03 AGRICULTURAL & RURAL FINANCE PTY LTD & 1 OR v JOHN EDWARD ATKINSON & 215 ORS JUDGMENT 1 This is an application for security for costs brought by the cross-defendant to the second cross-claim, Stephen Murray Lloyd, against the second cross-claimant Oceania Agriculture Limited to which I shall refer as "OAL". The applicant moves, pursuant to part 53 rule 2 of the Rules or, alternatively, pursuant to section 1335 of the Corporations Act 2001, for security in the amount of $50,000 or otherwise as the Court thinks fit. Further orders are sought, being a stay of the second cross-claim until the security is paid and liberty to apply for further security, together with costs.