JAZABAS PTY LTD & ORS v HADDAD & ORS [2007] NSWCA 291

New South Wales Court of Appeal

CITATION: JAZABAS PTY LTD & ORS v HADDAD & ORS [2007] NSWCA 291

HEARING DATE(S): 20 August 2007

JUDGMENT DATE: 25 October 2007

JUDGMENT OF: Mason P at 1; Basten JA at 4; McClellan CJ at CL at 35

DECISION: 1. Grant leave to appeal; 2. Dismiss the appeal

CATCHWORDS: COSTS – Appeal from decision ordering claimants to give security for costs – whether an order for security will stultify proceedings – likelihood of claimant's success in proceedings – undertaking by individual shareholder to meet opponent's costs of proceedings – impecuniosity of plaintiffs – whether impecuniosity was caused by the opponents

Corporations Act 2001 LEGISLATION CITED: Environmental Planning and Assessment Act 1979 Fair Trading Act 1987 (NSW). Interpretation Act 1987 (NSW)

Alec Finlayson v Armidale City Council (1994) 51 FCR 378 Ariss v Express Interiors Pty Ltd (In liq) [1996] 2 VR 507 Bell Wholesale Co Ltd v Gates Export Corporation (1984) 2 FCR 1 Bryan E Fencott and Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497 Buckley v Bennell Design & Constructions Pty Ltd (1974) 1 ACLR 301 Cameron's Unit Services Pty Ltd v Kevin R Whelpton & Associates (Australia) Pty Ltd (1986) 13 FCR 46 Cowell v Taylor (1885) 31 Ch D 34 Epping Plaza Fresh Fruit & Vegetables Pty Ltd v Bevendale Pty Ltd [1999] 2 VR 191 Equity Access Ltd v Westpac Banking Corp (1989) ATPR 40-972 Erolen v Baulkham Hills Shire Council (1993) 10 ACSR 441 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 81 ALJR 1107 Fat-sel Pty Ltd v Brambles Holdings Ltd (1985) ATPR 40-544 at 46,428 Fiduciary Ltd v Morningstar Research Pty Ltd (2004) 208 ALR 564 Gentry Bros Pty Ltd v Wilson Brown & Associates Pty Ltd & Ors (1992) 8 ACSR 405 Harpur v Ariadne Australia Ltd [1984] 2 Qd R 523 House v The King (1936) 55 CLR 499 Intercraft Cabinets Pty Ltd v Sampas Pty Ltd (1997) 18 WAR 306 Irwin Alsop Services v Mercantile Mutual Insurance Co Ltd [1986] VR 61 Jazabas v Botany Council [2000] NSWSC 58 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 CASES CITED: L Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (1980) 150 CLR 225 Litmus Australia Pty Ltd (in Liq) v Paul Brian Canty [2007] NSWSC 670 M A Productions Pty Ltd v Austarama Television Pty Ltd (1982) 7 ACLR 97 Mallet v Mallet (1984) 156 CLR 605 Melville v Craig Nowlan & Associates Pty Ltd (2001) 54 NSWLR 82 Micallef v ICI Australia Operations Pty Ltd [2001] NSWCA 274 Norbis v Norbis (1986) 161 CLR 513 Pacific Acceptance Corporation Ltd v Forsyth (No. 2) [1967] 2 NSWR 402 Pioneer Park (in liq) v ANZ [2005] NSWSC 832 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 Prime Forme Cutting Pty Ltd v Baltica General Insurance Co (1990) 8 ACLC 29 Project 28 Pty Ltd v Barr [2005] NSWCA 240 Pyrenees Shire Council v Day (1998) 192 CLR 330 Remm Construction (SA) Pty Ltd v Allco Newsteel Pty Ltd (1992) 57 SASR 180 Sharjade v Darwinia Estate [2006] NSWSC 708 Sutherland Shire Council v Heyman (1985) 157 CLR 424 SZEEU v Minister for Immigration and Multicultural and Indigenous Affairs (2006) 150 FCR 214 Uptown Sydney Development Corporation Pty Ltd v Bank of New Zealand (No. 1) (1993) 11 ACSR 300 Winnote Pty Ltd (In liq) v Page (2005) 64 NSWLR 244 Wong and Leung v The Queen (2001) 207 CLR 584 Yandil Holdings Pty Ltd v Insurance Co of North America (1985) 3 ACLC 542