Bright Ceiling Systems Pty Ltd v Merhis Contracting Pty Ltd [2016] NSWSC 631

Supreme Court New South Wales

Medium Neutral Citation: Bright Ceiling Systems Pty Ltd v Merhis Contracting Pty Ltd [2016] NSWSC 631 Hearing dates: 15 March 2016 Decision date: 17 May 2016 Jurisdiction: Common Law Before: Button J Decision: (1) Bright Ceilings Systems Pty Ltd must provide security for the costs of Merhis Contracting Pty Ltd in these proceedings in the sum of $50,000. (2) The security in the sum of $50,000 must be paid into Court. (3) Until such security is provided, these proceedings are stayed. (4) Each party must pay its own costs of the proceedings before me. (5) The matter is listed for directions at 9 AM before the Common Law Registrar on 31 May 2016. Catchwords: COSTS – application for security for costs – impecunious corporate plaintiff – corporate plaintiff in substantive proceedings the subject of liquidation proceedings – order made but quantum of security reduced Legislation Cited: Corporations Act 2001 (Cth), s 1335 Uniform Civil Procedure Rules 2005 (NSW), r 42.21(1) Cases Cited: Collingnon Developments Pty Ltd v Wurth (1975) 1 ACLR 314 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 Mignon Cakes Pty Ltd v Hiltide Pty Ltd [2004] FCA 142 Wollongong City Council v Legal Business Centre Pty Ltd [2012] NSWCA 245 Texts Cited: G E Dal Pont, Law of Costs (3rd ed 2013, Butterworths) Category: Procedural and other rulings Parties: Bright Ceiling Systems Pty Ltd (Plaintiff/Respondent) Merhis Contracting Pty Ltd (Defendant/Applicant) Representation: Counsel: B M Zipser (Plaintiff/Respondent) D S Weinberger (Defendant/Applicant)