Broadway Plaza Investments v Broadway Plaza Pty Ltd; In the matter of Combined Projects (Arncliffe) Pty Ltd [2019] NSWSC 1082

Supreme Court New South Wales

Medium Neutral Citation: Broadway Plaza Investments v Broadway Plaza Pty Ltd; In the matter of Combined Projects (Arncliffe) Pty Ltd [2019] NSWSC 1082 Hearing dates: 4 July 2019; 12 August 2019 Decision date: 22 August 2019 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Order that the leave granted on 9 May 2019 to the plaintiff (Sayour Holdings Pty Ltd) to file the first cross-claim in the name of Combined Projects (Arncliffe) Pty Ltd be set aside, upon the expiry of 28 days from the date of these orders unless, within that time period, the plaintiff: (a) provides an undertaking in the form of Annexure A to the notice of motion filed 7 June 2019 by the second and third defendants to the Arncliffe proceedings (2017/00180712); and (b) provides security for that undertaking in the amount of $2 million for the costs of the respective cross-defendants to the first cross-claim, by way of payment into Court or unconditional bank guarantee in a form acceptable to the cross-defendants or otherwise as ordered by the Court. 2. Order the plaintiff to pay the second and third defendants' costs of the notice of motion filed 7 June 2019 in the Arncliffe proceedings. 3. Otherwise, dismiss the notices of motion that were before the Court for hearing on 4 July 2019 and 12 August 2019, with costs of those motions to be costs in the cause. Catchwords: CIVIL PROCEDURE – interlocutory applications – application for secured undertakings as to costs of the derivative suit in one proceeding – in the alternative applications for security for costs in one or both of the respective proceedings – pursuant to ss 237 and 242, 1335(1) of the Corporations Act 2001 (Cth) and/or r 42.21 of the Uniform Civil Procedure Rules 2005 (NSW) and/or the Court's inherent jurisdiction Legislation Cited: Civil Procedure Act 2005 (NSW), s 3(1) Corporations Act 2001 (Cth), ss 237, 242, 247A, 1317H, 1335, Pt 2F.1A Property, Stock and Business Agents Act 2002 (NSW), s 55A Uniform Civil Procedure Rules 2005 (NSW), r 42.21 Cases Cited: Allstate Life Insurance Co v ANZ Banking Group Limited (1995) 134 ALR 187; [1995] FCA 1778 Armstrong Scalisi Holdings Pty Ltd v Piscopo (Trustee), in the matter of Collins [2017] FCA 423 Beach Petroleum NL v Johnson (1992) 7 ACSR 203 Beale v Trinkler [2010] NSWSC 246 Bevwizz Group Pty Ltd v Transport Solutions Pty Ltd [2008] NSWSC 1399 Blakeney v Blakeney [2016] WASCA 76; 113 ACSR 398 Broadway Plaza Investments Pty Ltd v Broadway Plaza Pty Ltd [2019] NSWSC 410 Brundza v Robbie & Co (No 2) (1952) 88 CLR 171; [1952] HCA 49 Bryan E Fencott & Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497 Buckley v Bennell Design and Constructions Pty Ltd (1974) 1 ACLR 301 Burger King Corporation v Hungry Jack's Pty Ltd (2001) 69 NSWLR 558; [2001] NSWCA 187 Chocron v Onkoud [2018] NSWSC 1205 Cody v Live Board Holdings Pty Ltd (No 2) [2017] NSWSC 308 Concrete Constructions Pty Ltd v Dalma Formwork Pty Ltd [1999] NSWCA 16 Cooper v Myrtace Consulting Pty Ltd [2014] FCA 480 Cornelius v Global Medical Solutions Australia Pty Ltd [2014] NSWCA 65; (2014) 98 ACSR 301 Dalma Formwork Pty Ltd (Administrator Appointed) v Concrete Constructions Group Ltd [1998] NSWSC 472 Ehsman v Nutectime International Pty Ltd [2006] NSWSC 887; 58 ACSR 705 Epping Plaza Fresh Fruit and Vegetables Pty Ltd v Bevendale Pty Ltd [1999] 2 VR 191; [1999] VSCA 43 Farrell v Gray [2009] NSWSC 1297 Fiduciary Ltd v Morningstar Research Pty Ltd [2005] NSWSC 442; 53 ACSR 732 Funds First Pty Ltd v Owners Corporation Strata Plan 66609 (No. 2) [2008] NSWSC 428 Green (as liquidator of Armico Mining Pty Ltd) v CGU Insurance Ltd [2008] NSWCA 148; 67 ACSR 105 Griffith v John Fairfax Publications Pty Ltd [2009] NSWSC 100 HP Mercantile Pty Ltd v Dierickx [2013] NSWCA 87 Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744 In re Metropolitan Amalgamated Estates Ltd; Fairweather v The Company [1912] 2 Ch 497 In the matter of Colorado Products Pty Ltd (in prov liq) [2013] NSWSC 611 In the matter of Combined Projects (Arncliffe) Pty Ltd [2019] NSWSC 1070 In the Matter of Felan's Fisheries Pty Limited [2016] NSWSC 1351 In the matter of Fishinthenet Investments Pty Ltd and Coastal Waters Seafood Pty Ltd [2014] NSWSC 260 In the matter of Wan Jia (Australia) International Development Pty Ltd [2012] NSWSC 1007 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd [2002] NSWSC 609 Investmentsource v Knox Street Apartments Pty Ltd (2002) 56 NSWLR 27 Jazabas Pty Ltd v Haddad [2007] NSWCA 291; 65 ACSR 276 Johnes v Claughton (1822) 37 ER 966 Kardos v Sarbutt (No. 2) [2006] NSWCA 206 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 Kroehn v Kroehn (1912) 15 CLR 137; [1912] HCA 45 Langton v Langton (1855) 44 ER 12 Litmus Australia Pty Ltd (in liq) v Canty [2007] NSWSC 670 Live Board Holdings Ltd v Cody Live Pty Ltd [2017] NSWCA 302 Livingspring Pty Ltd v Kliger Partners (2008) 20 VR 377; [2008] VSCA 93 LSKF Holdings Pty Ltd v Shield Lifestone Holdings Pty Ltd [2018] NSWCA 109 Mabrouk Minerals Pty Ltd v Mabrouk Holdings Ltd [2008] WASC 132 Meekin Enterprises v Gersbach (Supreme Court (NSW), McLelland CJ in Eq, 6 August 1997, unrep) Modakboard Australia Pty Ltd v Matthew Howard Brady [2018] NSWSC 399 Narradine Pty Ltd v Mascot Steel and Tools Pty Ltd [2012] NSWSC 385 Ninan v St George Bank Ltd [2012] FCA 905; (2012) 294 ALR 190 Old v Hodgkinson; Old v McInnes [2009] NSWSC 1160 Ollerenshaw v The Uniting Church in Australia Property Trust (NSW) [2017] NSWSC 1637 Pacific Acceptance Corporation Limited v Forsyth (No 2) (1967) 85 WN (Pt 1) (NSW) 715 Peile v Nobel (Australasia) Pty Ltd [1966] VR 433 Porter v Gordian Runoff Limited [2004] NSWCA 171 Prynew Pty Limited v Nemeth [2010] NSWCA 94 PS Chellaram & Co Ltd v China Ocean Shipping Co [1991] HCA 36; (1991) 102 ALR 321 Southern Cross Exploration NL v Fire & All Risks Insurance Co Ltd (1985) 1 NSWLR 114 Stanley v Phillips (1966) 115 CLR 470 Street v Luna Park Sydney Pty Ltd [2006] NSWSC 1317 Sumpter v Hedges [1898] 1 QB 673 Sydmar Pty Ltd v Statewise Developments Pty Ltd (1987) 73 ALR 289 Sydney Water Corporation v Makucha [2010] NSWSC 114 Tatham v Parker (1853) 65 ER 221 The Owners – Strata Plan 87265 v Saaib [2019] NSWSC 289 Tyneside Property Management Pty Limited v Hammersmith Management Pty Ltd [2013] NSWCA 404 Vertical Australia Pty Ltd v Air Company Vertical-T LLC; Air Company Vertical-T LLC v Vertical Australia Pty Ltd [2012] NSWSC 719 Wallersteiner v Moir (No 2) [1975] QB 373 Warren Mitchell Pty Ltd v Australian Maritime Officers Union (1993) 12 ACSR 1 Westpac Banking Corporation v Southern Environmental Services Pty Ltd [2017] NSWSC 626 Winnote Pty Ltd (in liq) v Page (2005) 64 NSWLR 244; [2005] NSWCA 362 Wollongong City Council v Legal Business Centre Pty Ltd [2012] NSWCA 245 Wood v Links Golf Tasmania Pty Ltd [2010] FCA 570 Category: Procedural and other rulings Parties: Broadway Plaza proceedings 2016/00282940