CTI Resort Holdings Group Pty Ltd v Jingquan Chen [2015] NSWSC 2090

Supreme Court New South Wales

Medium Neutral Citation: CTI Resort Holdings Group Pty Ltd v Jingquan Chen [2015] NSWSC 2090 Hearing dates: 7 August 2015 Date of orders: 07 August 2015 Decision date: 07 August 2015 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Proceedings stayed until undertaking to be bound by costs order against the plaintiff or security for costs in the sum of $50,000 given by persons named in [11]. Catchwords: PROCEDURE – costs – security for costs – corporate impecuniosity – discretionary factors weighing against security for costs order – where plaintiff has strongly arguable case – whether plaintiff's case is in truth defensive – existence of special relationship between plaintiff and defendant – whether order for security would stultify proceedings – where persons standing behind company unwilling, rather than unable, to contribute security – injustice of prosecuting proceedings on behalf of company when company unable to meet adverse costs order and shareholders shielded from liability. Legislation Cited: (CTH) Corporations Act 2001, s 1335 (NSW) Uniform Civil Procedure Rules 2005, r 42.41(1) Cases Cited: KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 13 ACLC 437 Category: Costs Parties: CTI Resort Holdings Group Pty Ltd ACN 603 076 026 (plaintiff) Jingquan Chen (first defendant) Full River Pty Ltd (second defendant) Representation: Counsel: J E Sexton SC w J L Lee (applicants/defendants) H Stowe w M Kloucek (respondent/plaintiff)

Solicitors: Ren Zhou Lawyers (applicants/defendants) Shohmelian Legal (respondent/plaintiff) File Number(s): 2015/181299