Carey v Freehills

The case of Carey v Freehills involved the appellants, who were former employees of the respondent, a law firm. They sought to appeal a decision made by the primary judge, who dismissed their claims of unlawful termination, constructive dismissal, and breach of contract. The appeal was heard by the Full Court of the Federal Court of Australia. The primary concern was whether the appellants could secure the necessary funds for the appeal and if the appeal should be stayed if they failed to do so.

The court had to determine the criteria for granting security for costs in an appeal and whether the appellants had acted with due diligence in attempting to secure the required funds. The court also needed to assess the respondent's risk of incurring significant costs if the appeal proceeded, and whether the appellants' prospects of success were such that they should be allowed to proceed despite the inability to provide security.

The court held that the primary judge was correct in requiring the appellants to provide security for costs. The court found that the appellants had not acted with due diligence in seeking funding for the appeal, and that the respondent faced a substantial risk of incurring costs if the appeal proceeded. The court also noted that the appellants' prospects of success were not strong enough to warrant allowing the appeal to proceed without security. Consequently, the court ordered that the appellants provide security for the respondent's costs of the appeal by a specified date, and that the appeal be stayed if they failed to do so. The appellants were also ordered to pay the respondent's costs of the interlocutory application.