Capital Securities XV Pty Ltd v Calleja (No 3)

In the case of Capital Securities XV Pty Ltd v Calleja, the plaintiff sought security for costs against the defendant. The plaintiff, Capital Securities XV, a company registered for the sole purpose of managing a portfolio of loans for the calendar year 2015, had ceased trading. The defendant, Calleja, was being sued for breach of fiduciary duty, negligence and breach of contract. The court was required to determine whether the plaintiff would be unable to pay the defendant’s costs if ordered, and whether any other relevant factors should be considered in determining the amount and form of security for costs. The court also had to consider the quantum of security for costs, including any offset by the plaintiff’s liability in restitution.
The court held that the plaintiff would be unable to pay the defendant’s costs if ordered. The court found that the plaintiff’s impecuniosity was a relevant factor in determining the amount of security for costs. The court also considered other relevant factors, such as the delay in applying for security for costs. The court ordered that the plaintiff provide security for costs in the amount of $80,000. The court also found that the plaintiff’s payment to the credit of the defendant’s loan account with the bank was a mistake as to whether the payment was authorised as part of a loan advance. The court ordered that the security for costs be offset by the plaintiff’s liability in restitution.