Benzlaw & Assoc P/L v Medi-Aid Centre Foundation Ltd

Benzlaw & Assoc P/L commenced proceedings against Medi-Aid Centre Foundation Ltd and others, seeking damages for alleged breaches of contract. The case was heard in the Supreme Court of New South Wales, where both the plaintiff and the defendants sought security for costs. The plaintiff's litigation was funded by a third party, and the plaintiff was considered impecunious. The second defendant filed a counterclaim against the plaintiff, which was seen as a defensive tactic. The court was required to decide whether the plaintiff should be ordered to provide security for the defendants' costs and, if so, in what amount. Additionally, the court had to determine whether the second defendant should be ordered to provide security for costs and, if so, in what amount.

The court considered the plaintiff's impecuniosity and the nature of the second defendant's counterclaim as a defensive manoeuvre. It was determined that the plaintiff should provide security for the first and third defendants' costs in the amount of $100,000 each, to be paid by a specified date. The court dismissed the plaintiff's application for security for costs against the second defendant, given the nature of the counterclaim. The plaintiff was also ordered to pay the defendants' costs of and incidental to the defendants' applications, as well as the second defendant's costs of and incidental to the plaintiff's application for security against it.

In conclusion, the court ordered the plaintiff to provide security for the first and third defendants' costs in the amount of $100,000 each by a specified date. The plaintiff's application for security for costs against the second defendant was dismissed, and the plaintiff was ordered to pay the defendants' costs of and incidental to the defendants' applications, as well as the second defendant's costs of and incidental to the plaintiff's application for security against it.