In the matter of Elsmore Resources Ltd [2014] NSWSC 1247

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Elsmore Resources Ltd [2014] NSWSC 1247 Hearing dates: 1 September 2014 Decision date: 08 September 2014 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Plaintiff to provide security for Third Defendant's costs of proceedings in such form as may be agreed between parties, or otherwise in a form to be determined by a Registrar, in two tranches. Proceedings to be stayed if security is not provided when due in accordance with above order. Plaintiff to pay the costs of this application as agreed or assessed. Catchwords: PROCEDURE - costs - security for costs - application under Uniform Civil Procedure Rules 2005 (NSW) r 42.21 and Corporations Act 2001 (Cth) s 1335 - whether jurisdiction to make an order for security for costs is established - whether reason to believe that plaintiff company would be unable to pay costs of third defendant if ordered to do so - discretionary considerations - whether company has arguable case - whether application would stultify proceedings - whether any impecuniosity of company results from conduct of defendant - quantum of security. Legislation Cited: - Contracts Review Act 1980 (NSW) - Corporations Act 2001 (Cth) s 1335 Uniform Civil Procedure Rules 2005 (NSW) r 42.21, 42.21(1)(d), 42.21(1A) Cases Cited: - ACN 105 921 962 Pty Ltd v Wiggett [2012] NSWSC 1526 - Barnes v Addy (1874) LR 9 Ch App 244 - Beach Petroleum NL v Johnson (1992) 7 ACSR 203 - Bell Wholesale Co Pty Ltd v Gates Export Corporation (No 2) (1984) 2 FCR 1; 52 ALR 176 - BPM Pty Ltd v HPM Pty Ltd [1996] 136 FLR 339 - Colmax Glass Pty Ltd v Polytrade Pty Ltd [2013] VSC 311 - Consul Development Pty Ltd v DPC Estates Pty Ltd [1975] HCA 8; (1975) 132 CLR 373 - Deangrove Pty Ltd v Buckby [2002] FCA 1544 - Dubow v Fitness First Australia Pty Ltd (No 2) [2012] NSWSC 961 - Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 - Fiduciary Ltd v Morning Star Research Pty Ltd [2004] NSWSC 664; (2004) 208 ALR 564 - Golden Mile Property Investments Pty Ltd (in liq) v Cudgegong Australia Pty Ltd [2014] NSWCA 224 - Green (as liquidator of Arimco Mining Pty Ltd) v CGU Insurance Ltd [2008] NSWCA 148; (2008) 67 ACSR 105 - Hasler v Singtel Optus Pty Ltd [2014] NSWCA 266 - Jazabas Pty Ltd v Haddad [2007] NSWCA 291; (2007) 65 ACSR 276 - KP Cable Investments Pty Ltd v Meltglow Pty Ltd [1995] FCA 76; (1995) 56 FCR 189 - Liberty Industrial Pty Ltd v Donald McCarthy Trading Australia Pty Ltd [2013] NSWSC 279 - LRSM Enterprise Pty Ltd v Zurich Australia Insurance Ltd [2014] NSWCA 88 - Polstead Pty Ltd (in liq) v Shah [2009] NSWSC 560 - Power Infrastructure Pty Ltd v Downer EDI Engineering Power Pty Ltd [2010] FCA 122 - Re Colorado Products Pty Ltd (in prov liq) [2013] NSWSC 611 - Re Pioneer Energy Holdings Pty Limited [2013] NSWSC 1366 - Ryberg Telecommunications Pty Ltd (in liq) v Optus Mobile Pty Ltd [2011] NSWSC 1268 - Szanto v Bainton [2011] NSWSC 985 - Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2009] NSWSC 563 - Wollongong City Council v Legal Business Centres Pty Ltd 2012] NSWCA 245 Texts Cited: - Ritchie's Uniform Civil Procedure NSW W Gummow, "Knowing assistance" (2013) 87 Australian Law Journal 3 Category: Interlocutory applications Parties: Elsmore Resources Ltd (Plaintiff) Ashley Grant Howard (First Defendant) Periwinkle Investments Pty Ltd (Second Defendant) Harry Fung (Third Defendant) HF Global Financial Solutions Pty Ltd (Fourth Defendant) Representation: Counsel: E Cox (Plaintiff/Respondent) P Caillard (Third Defendant/Applicant) Solicitors: Norton White (Plaintiff/Respondent) Rockwell Olivier (Third Defendant/Applicant) File Number(s): 2014/57738