Blue Mirror Pty Ltd v Tan & Tan Australia Pty Ltd (in liq)

Blue Mirror Pty Ltd sought security for costs from Tan & Tan Australia Pty Ltd (in liq) in proceedings before the Court of Appeal of the Supreme Court of New South Wales. The application for security for costs was made late in the proceedings, with the appeal date having been vacated if an order for security were made.

The primary legal issue before the Court of Appeal was whether to grant the application for security for costs, notwithstanding the significant delay in its making and the potential disruption to the scheduled appeal date. The court was required to consider the principles governing applications for security for costs, particularly in circumstances where such applications are brought close to the hearing date.

Payne JA dismissed the Notice of Motion, finding that the delay in seeking security for costs was not adequately explained and that granting the application at such a late stage would cause undue prejudice to the respondent and disrupt the court's timetable. The court applied the principles that applications for security for costs should be made promptly and that the court retains a discretion to refuse such applications where they are made vexatiously or for the purpose of delay, or where granting them would be unjust.

Consequently, the applicants on the motion, Blue Mirror Pty Ltd, were ordered to pay the respondent's costs of the motion.