Sergienko v AXL Financial Pty Ltd [2019] NSWSC 1611

Supreme Court New South Wales

Medium Neutral Citation: Sergienko v AXL Financial Pty Ltd [2019] NSWSC 1611 Hearing dates: 5 November 2019 Date of orders: 20 November 2019 Decision date: 20 November 2019 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Pursuant to r 42.21(1) of the Uniform Civil Procedure Rules 2005 (NSW), order the cross-claimants (the fourth and fifth defendants in the proceedings) to provide security for the cross defendants' costs of the second cross-claim in the sum of $60,000 within 28 days, such security to be provided by way of an unconditional bank guarantee, in a form acceptable to the cross-defendant, or payment into court. 2. In the event that the security ordered in Order 1 is not provided within the time specified, order that the second cross-claim be stayed until further order. 3. Order the cross-claimants to pay the cross-defendants costs of and incidental to this notice of motion. Catchwords: COSTS — Security for costs — Relevant factors – r 42.21(1A) of the Uniform Civil Procedure Rules 2005 (NSW) – consideration of prospects of success or merits of the proceedings (r 42.21(1A)(a)) and whether the cross-claim is defensive in nature (r 42.21(1A)(e)) – security for costs ordered by way of an unconditional bank guarantee or payment into court. Legislation Cited: Civil Procedure Act 2005 (NSW), s 3(1) Corporations Act 2001 (Cth), s 1355 Uniform Civil Procedure Rules 2005 (NSW), r 42.21 Cases Cited: Allstate Life Insurance Co v Australia & New Zealand Banking Group Limited [1995] FCA 1778; (1995) 134 ALR 187 Bryan E Fencott and Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497 Buckley v Bennell Design & Construction Pty Ltd (1974) 1 ACLR 301 Commissioner of Taxation v Vasiliades [2016] FCAFC 170; (2016) 344 ALR 558 Cornelius v Global Medical Solutions Australia Pty Ltd; Farrag v Global Medical Solutions Australia Pty Ltd [2014] NSWCA 65 Estates Property Investment Corporate Ltd v Pooley (1975) 3 ACLR 256 Fiduciary Ltd v Morningstar Research Pty Ltd [2004] NSWSC Green Camel Pty Ltd v Urban Ecological Systems Ltd [2017] NSWSC 362 Idoport Pty Ltd v National Australia Bank Ltd [2002] NSWCA 271 In the matter of Colorado Products Pty Limited (in prov liq) [2013] NSWSC 611 In the Matter of Felan's Fisheries Pty Limited [2016] NSWSC 1351 Interwest Ltd v Tricontinental Corporation Ltd (1991) 5 ACSR 621 Jeffery & Katauskas Pty Ltd v SST Consulting Pty Ltd (2009) 239 CLR 75; [2009] HCA 43 John Arnold's Surf Shop (in liq) v Heller Factors Pty Ltd [1979] 22 SASR 20; (1979) 4 ACLR 492 KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189 Litmus Australia Pty Ltd (in liq) v Canty [2007] NSWSC 670 Live Board Holdings Ltd v Cody Live Pty Ltd [2017] NSWCA Livingspring Pty Ltd v Kliger Partners (2008) 20 VR 377; [2008] VSCA 93 LTDC Pty Ltd v Cashlow Finance Australia Pty Ltd [2019] NSWSC 150 Pacific Acceptance Corporation Ltd v Forsyth (No 2) (1967) 85 WN Pt 1 (NSW) 715 Sergienko v AXL Financial Pty Ltd [2019] NSWSC 1610 Sydmar Pty Ltd v Statewise Developments Pty Ltd (1987) 73 ALR 289 Trojan Marketing & Consultants Pty Limited v Kirela Pty Limited [2018] NSWSC 1786 Winnote Pty Ltd (in liq) v Page (2005) 64 NSWLR 244; [2005] NSWCA 362 Wollongong City Council v Legal Business Centre Pty Limited [2012] NSWCA 245 Category: Procedural and other rulings Parties: Sergie Sergienko (Plaintiff) AXL Financial Pty Ltd (First Defendant) Oliver Roths (Second Defendant) Roths Holdings Australia Pty Ltd (Third Defendant) IWC Industries Pty Ltd (Fourth Defendant) DK Excavation and Concreting Pty Ltd (Fifth Defendant) Representation: Counsel: D Meyerowitz-Katz (Plaintiff/Second Cross-defendant on the second cross-claim) I King (Fourth and Fifth Defendants/Cross-claimants on second cross-claim)