Pioneer Park Pty Limited (in liquidation) v Australia and New Zealand Banking Group Limited; Clifford John Carpenter v Australia and New Zealand Banking Group Limited [2005] NSWSC 498

New South Wales Supreme Court

CITATION : Pioneer Park Pty Limited (in liquidation) v Australia and New Zealand Banking Group Limited; Clifford John Carpenter v Australia and New Zealand Banking Group Limited [2005] NSWSC 498

HEARING DATE(S) : 06/05/05

JUDGMENT DATE : 27 May 2005

Equity Division JURISDICTION : Commercial List

JUDGMENT OF : Einstein J

DECISION : Security for costs ordered.

CATCHWORDS : Practice and procedure - Costs - Security for costs - General principles - Impecunious plaintiff - Bodies corporate - Requirement that appropriate financial disclosure be made concerning position of those likely to benefit in the circumstances that proceedings are successful - Purpose of a security for costs order is a protective jurisdiction to ensure that the primary purposes for having costs orders themselves can be achieved - A defendant is protected against the risk that a cost order obtained at the end of the proceedings may turn out to be of no value by reason of the impecuniosity of the plaintiff - Jurisdiction assists both the compensation purpose as well as the public interest objective - Plaintiff Company in liquidation - Defendant Bank - Claim by Company that Bank wrongfully terminated certain finance facilities and without justification proceeded to call up indebtedness, to appoint administrators and to sell property under power of sale under mortgage - Complex of litigation between Bank, Company and Mr Carpenter, former chief executive officer and director of Company, in several jurisdictions - Leave granted to Mr Carpenter to bring proceedings on behalf of Company - Leave conditional on Mr Carpenter paying, bearing and indemnifying Company against all costs charges and expenses of and incidental to the bringing and continuation of the proceedings brought by him on behalf of the Company - Proceedings commenced in the name of Company against Bank - Bank seeks security for costs - Overriding Purpose Rule - Proper approach to multiplicity of litigation raising same issues