In the matter of HIH Insurance Limited (In Liquidation) (ACN 008 636 575) and others; In the matter of HIH Insurance Limited (In Liquidation) ACN 008 636 575 & others named in Schedule A; In the matter of HIH Insurance Limited (In Liquidation); Cuong Ly v HIH Insurance Limited (In Liquidation) [2014] NSWSC 1587

Supreme Court New South Wales

Medium Neutral Citation: In the matter of HIH Insurance Limited (In Liquidation) (ACN 008 636 575) and others; In the matter of HIH Insurance Limited (In Liquidation) ACN 008 636 575 & others named in Schedule A; In the matter of HIH Insurance Limited (In Liquidation); Cuong Ly v HIH Insurance Limited (In Liquidation) [2014] NSWSC 1587 Hearing dates: Monday, 10 November 2014 Date of orders: 10 November 2014 Decision date: 10 November 2014 Jurisdiction: Equity Division Before: Brereton J Decision: Motion dismissed with costs. Plaintiffs to file and serve a schedule stating the name and residential address or registered office of each plaintiff by 12 September 2014. Catchwords: COSTS – security for costs – inherent jurisdiction of the costs to order security for costs – exercise of jurisdiction only in exceptional cases – proof of impecuniosity insufficient for exercise of jurisdiction – requirement that proceedings be harassing or vexatious unless an order for costs is made – where proceedings pursued by nominal plaintiff against whom an order for security would be futile – whether number of plaintiffs increases difficulty of enforcing prospective costs orders – where plaintiffs' claims pursued by litigation funders or solicitors acting on a contingency basis – held that there was no reasonable apprehension that a costs order would not be capable of enforcement Legislation Cited: (Cth) Corporations Act 2001, s 1335 (NSW) Civil Procedure Act 2005, s 181 (NSW) Uniform Civil Procedure Rules 2005, r 42.21(1) Cases Cited: Dae Boong International Company Pty Ltd v Gray [2009] NSWCA 11 Green (as liquidator of Arimco Mining Pty Ltd) v CGU Insurance Ltd (2008) 67 ACSR 105; [2008] NSWCA 148 Madgwick v Kelly [2013] FCAFC 61 Morris v Hanley [2000] NSWSC 957 Rajski v Computer Manufacture and Design Pty Ltd [1982] 2 NSWLR 443 Category: Costs Parties: Craig Richard Baldock and others (plaintiffs) Anthony Gregory McGrath in his capacity as Liquidator of HIH Insurance Limited (in liquidation) (first defendants) Christopher John Honey in his capacity as Liquidator of HIH Insurance Limited (in liquidation) (second defendants) Anthony Gregory McGrath in his capacity as Scheme Administrator of FAI Insurance Company Ltd (in liquidation and subject to a scheme of arrangement) (third defendants) Christopher John Honey in his capacity as Scheme Administrator of FAI General Insurance Company Ltd (in liquidation and subject to a scheme of arrangement) (fourth defendants) Anthony Gregory McGrath in his capacity as Scheme Administrator of HIH Casualty and General Insurance Ltd (in liquidation and subject to a scheme of arrangement) (fifth defendants) Christopher John Honey in his capacity as Scheme Administrator of HIH Casualty and General Insurance Ltd (in liquidation and subject to a scheme of arrangement) (sixth defendants) Anthony Gregory McGrath in his capacity as Scheme Administrator of CIC Insurance Ltd (in liquidation and subject to a scheme of arrangement) (seventh defendants) Christopher John Honey in his capacity as Scheme Administrator of CIC Insurance Ltd (in liquidation and subject to a scheme of arrangement) (eight defendants) Representation: Counsel: P Mahatme (solicitor) (plaintiffs in Cuong Ly, Smith and DBW) B Dennis (solicitor) (plaintiffs in Baldock) J Scarcella (solicitor) (defendants)