Ant and Ballast Pty Ltd v City of Greater Geelong (No 2)

In Ant and Ballast Pty Ltd v City of Greater Geelong (No 2), the defendant sought an order for security for costs against the plaintiff. The plaintiff, a construction company, was involved in a dispute with the defendant, the City of Greater Geelong, over the defendant's refusal to issue a building permit for a project the plaintiff was undertaking. The case was heard in the Federal Circuit Court of Australia.

The legal issues the court was required to determine included whether the plaintiff's claims were weak and whether the plaintiff had the ability to pay the defendant's costs if the defendant were to succeed in the proceedings. The court also had to consider whether it was appropriate to order security for costs in tranches, given the current state of the pleadings and the evidence presented.

The court found that the plaintiff's claims were not strong, as the plaintiff had not led evidence about the financial position of its director or shareholders, and the court had to rely on the uncorroborated and untested assertions of the plaintiff's director. The court held that the plaintiff did not have the ability to pay the defendant's costs if the defendant were to succeed in the proceedings. Therefore, the court ordered security for costs in tranches, to be paid over the course of the proceedings, rather than as a lump sum upfront. This approach was considered appropriate given the current state of the pleadings and the evidence presented.

The court ordered that the plaintiff provide security for costs in tranches, to be paid over the course of the proceedings. The first tranche was set at $250,000, with subsequent tranches to be determined based on the progress of the case and any changes in the financial position of the plaintiff or its director and shareholders.