Bufalo Corp P/L v Lendlease Primelife Corp Ltd (No 3)

The case of Bufalo Corp P/L v Lendlease Primelife Corp Ltd (No 3) involved the plaintiff, Bufalo Corp P/L, seeking security for costs from the defendant, Lendlease Primelife Corp Ltd. The dispute arose from an action concerning a construction project where Bufalo Corp claimed it was owed money by Lendlease Primelife. The case was heard in the Supreme Court of Queensland. The primary issue before the court was whether the financial backing of Bufalo Corp by a litigation funder, which was not a party to the proceedings, should be taken into account when determining the application for security for costs.

The court was required to decide if the presence of a litigation funder, which was not a party to the proceedings, could be considered in the assessment of Bufalo Corp's ability to meet its costs if the litigation were to be unsuccessful. The plaintiff argued that the litigation funder's financial capacity should be relevant, while the defendant contended that the funder's involvement should not influence the court's decision on security for costs.

In determining the matter, the court held that the financial capacity of a litigation funder could be relevant when assessing an applicant's ability to meet costs. The court reasoned that if the funder's financial status was such that it could be reasonably relied upon to ensure the applicant could meet its costs, then this could be a pertinent factor. The court concluded that the litigation funder's financial backing could indeed be taken into account in the assessment of security for costs applications, provided that the funder's involvement was appropriately disclosed and the applicant could demonstrate a reasonable expectation of funding.