Chawk v Callan

In the matter of Chawk v Callan, the appellant, Mr Chawk, has appealed against the costs orders made in the Federal Court by his Honour, who awarded costs to Dr Callan, the respondent, for proceedings between the parties. The primary judgment was delivered on 3 August 2023, and the costs judgment was delivered on 10 October 2023. The appeal concerns the security for costs required for the appeal proceedings and the stay of the costs orders pending the appeal's outcome. Mr Chawk has admitted to being impecunious but seeks to stay the costs orders below pending the outcome of his appeal. Dr Callan has applied for security for the costs of the appeal under s 56 of the Federal Court of Australia Act 1976 (Cth) and r 36.09 of the Federal Court Rules 2011 (Cth), while Mr Chawk has filed an interlocutory application seeking to stay the orders in the primary judgment and the costs judgment. Both applications are heard together as they concern Mr Chawk's capacity to pay any costs order. The court granted Dr Callan's application for security for costs and dismissed Mr Chawk's application to stay the orders. The court found that Mr Chawk should give security for the costs of the appeal and the appeal be stayed until security is given. The court exercised its discretion under s 56 of the Act and r 36.09(1) of the Rules, considering the relevant principles, including the prospects of success of the appeal, the likelihood of the costs order being satisfied, and whether the making of the order would be oppressive. The court also considered the public interest aspects of the case. The orders made by the court include dismissing Mr Chawk's interlocutory application, requiring Mr Chawk to provide security for the respondent's costs in the amount of $50,000 within 42 days, and staying the execution of certain orders pending the provision of security. The court also ordered that if Mr Chawk fails to comply with the order to provide security, the appeal be dismissed.