AIMT Holdings Pty Ltd trading as New Era Balustrades v Amalgamated Holdings Ltd [2015] NSWDC 434

District Court New South Wales

Medium Neutral Citation: AIMT Holdings Pty Ltd trading as New Era Balustrades v Amalgamated Holdings Ltd [2015] NSWDC 434 Hearing dates: 18 September 2015 Date of orders: 18 September 2015 Decision date: 18 September 2015 Jurisdiction: Civil Before: P Taylor SC DCJ Decision: (1) Pursuant to s 1335 of the Corporations Act 2001 (Cth) and r 42.21 of the Uniform Civil Procedure Rules 2005, order the plaintiff to provide security to the defendant in the sum of $10,000 as security for costs up to but not including the trial of the proceedings (including the steps up to and including the exchange of evidence); and that the defendant not be precluded from making a further application in respect of security for the costs of the trial. (2) The security ordered may be provided by the provision within 14 days by the plaintiff of the sum of $10,000 to its solicitor and notification by the plaintiff's solicitor to the defendant's solicitor that the plaintiff's solicitor holds that sum as security for the defendant's costs until the Court otherwise orders, or such other form of security as the parties agree. (3) In the event that security is not provided within 14 days, the proceedings be stayed. (4) The Court notes the undertaking of Isolde Tornya not to call upon the plaintiff for repayment of the loan recorded in the plaintiff's balance sheet dated 30 June 2015 until the proceedings have concluded and any costs orders in favour of the defendant have been met. (5) Order the plaintiff pay the costs of the notice of motion. Catchwords: COSTS — security for costs — threshold question – reason to believe an inability to meet an adverse costs order – discretionary matters Legislation Cited: Corporations Act 2001 (Cth), s 1335 Uniform Civil Procedure Rules 2005, r 42.21 Cases Cited: Citrus Queensland Pty Ltd v Sunstate Orchards Pty Ltd (No 5) [2006] FCA 1672 Pearson v Naydler (1977) 1 WLR 899 Category: Procedural and other rulings Parties: AIMT Holdings Pty Ltd trading as New Era Balustrades (ACN 163 234 982) (plaintiff) Amalgamated Holdings Ltd (ACN 000 005 103) (defendant) Representation: Counsel: Ms N Obart (plaintiff) Mr G Johnson (defendant)