Martin John Green in his capacity as liquidator of Arimco Mining Pty Limited (in liquidation) v CGU Insurance Limited & Ors [2008] NSWSC 449

New South Wales Supreme Court

CITATION : Martin John Green in his capacity as liquidator of Arimco Mining Pty Limited (in liquidation) v CGU Insurance Limited & Ors [2008] NSWSC 449

HEARING DATE(S) : 02/05/08

JUDGMENT DATE : 9 May 2008

JURISDICTION : Equity Division Commercial List

JUDGMENT OF : Einstein J

DECISION : Application for security for costs incurred up to and including the making of the security for costs application rejected. Security for costs ordered in respect of anticipated future costs subject to reduction for exigencies.

CATCHWORDS : Practice and procedure - Security for costs - General principles - Delay - Litigation funding - Plaintiff liquidator brings proceedings seeking to recover approximately $40,000,000 including interest - Whether liquidators should be required to provide security for costs where litigation is funded by external funder

LEGISLATION CITED : Miscellaneous Provisions) Act 1946 (NSW) Supreme Court Act (1970) NSW

CATEGORY : Procedural and other rulings

Addstead Pty Ltd v Simionato Holdings Pty Ltd (unreported, Supreme Court of South Australia, Duggan J, S5691, 5 July 1996) Barton v Minister for Foreign Affairs (1984) 54 ALR 586 Bell Wholesale Co Pty Ltd v Gates Export Corporation (No 2) (1984) 52 ALR 176 Benzlaw & Assoc Pty Ltd v Medi-Aid Centre Foundation Ltd [2007] QSC 009 Bhattcharya v Freedman [2001] NSWSC 498 Buckley v Bennell Design and Construction Pty Ltd (1974) 1 ACLR 301 Byrnes v John Fairfax Publication Pty Ltd [2006] NSWSC 251 Chartspike Pty Ltd v Chahoud [2001] NSWSC 585 Commonwealth v Cable Water Skiing (Australia) Ltd (1994) 14 ACSR 760 Cory-Wright and Salmon Ltd v KPMG Peat Marwick [1993] 2 NZLR 701 Cowell v Taylor (1885) 31 Ch D 34 Crypta Fuels Pty Ltd v Svelte Corporation Pty Ltd (1995) 19 ACSR 68 Eddy v Mac Audio & Acoustical Consultants Pty Ltd [2000] SASC 149 Fiduciary Ltd v Morningstar Research Pty Ltd (2004) 208 ALR 564 Frankston Ambassador Pty Ltd v Cigna Insurance Australia Ltd (1991) 9 ACLC 790 Greener v E Kahn & Co Ltd [1906] 2 KB 374 Hession v Century 21 South Pacific Ltd (in liq) (1992) 28 NSWLR 120 Irwin Alsop Services v Mercantile Mutual Insurance Co Ltd [1986] VR 61 Jodast Pty Lrd v A & J Blattner Pty Ltd (1991) 104 ALR 248 Idoport Pty Ltd v National Australia Bank Limited [2001] NSWSC 744 Liberty Grove (Concord) Pty Ltd v Mirvac Projects Pty Ltd [2008] NSWSC 48 Lucas v Yorke (1983) 50 ALR 228 CASES CITED : Maronis Holdings Ltd v Nippon Credit Australia Ltd [2000] NSWSC 994 Merribee Pastoral Industries Pty Ltd v Australia and New Zealand Banking Group Ltd (1998) 193 CLR 502 Morris v Hanley [2000] NSWSC 957 Northern Southern Western Supermarkets Pty Ltd v HIH Casualty and General Insurance Ltd (in liq) [2002] NSWSC 541 Pasdale v Concrete Constructions (1995) 131 ALR 268 Pavelic Investments Pty Ltd, In re (1983) 8 ACLR 417 Pearson v Naydler [1977] 1 WLR 899 Pioneer Park Pty Ltd (in liq) v Australia and New Zealand Banking Group Ltd [2007] NSWCA 344 Plaza Print Pty Ltd v South British Insurance Co Limited (1984) 54 ACTR 3 Prime Forme Cutting Pty Ltd v Baltica General Insurance Co (1989) 8 ACLC 29 P S Chellaram & Co Ltd v China Ocean Shipping Co (1991) 102 ALR 321 ( Oshlack v Richmond River Council (1998) 193 CLR 72 Rajski v Computer Manufacture & Design Pty Ltd (1982) 2 NSWLR 443 Re W Powell and Sons [1896] 1 Ch 681 Re Strand Wood Co Ltd [1904] 2 Ch 1 Rhema Ventures Pty Ltd v Stenders [1993] 2 Qd R 326 Rickard Constructions Pty Ltd v Allianz Australia Insurance Ltd [2002] NSWSC 1162 Rosenfield Nominees Pty Ltd v Bain & Co (1988) 14 ACLR 467 Silverstone Holdings Pty Ltd v American Home Assurance Co [2003] WASC 139 Tenth Anemot Pty Ltd v Colonial Mutual General Insurance Co Ltd [1993] 2 VR 48 Timbertown Community Enterprises Ltd v Holiday Coast Credit Union Ltd (1997) 15 ACLC 1679 Tulloch Ltd v Walker (unreported, Yeldham J, Supreme Court of New South Wales, 8 December 1976) Yandil Holdings Pty Ltd v Insurance Company of North America (1985) 3 ACLC 542