Classic Bet (NSW) Pty Ltd v KRM (Vic) Pty Ltd; Kay v KRM (Vic) Pty Ltd (No 2)

Classic Bet (NSW) Pty Ltd and Kay (the appellants) sought to appeal a decision of the Supreme Court of Victoria. The respondent, KRM (Vic) Pty Ltd, applied for security for its costs of the appeal pursuant to s 1335(1) of the *Corporations Act 2001* (Cth). The appellants conceded that an order for security for costs should be made against them.

The primary legal issue before the Court of Appeal was the determination of the appropriate quantum of security for costs to be ordered against the appellants.

Payne JA, applying the principles governing applications for security for costs, noted that the court has a broad discretion in determining the amount of security. The court considered the likely costs of the appeal, including the costs of the appeal hearing and any potential costs associated with interlocutory applications. The court also took into account the financial circumstances of the appellants, as evidenced by the concession that security should be ordered. The court determined that a quantum of $50,000 would be appropriate to provide reasonable security for the respondent's costs.

The Court of Appeal ordered that the appellants provide security for the respondent's costs of the appeal in the sum of $50,000. The appellants were ordered to pay the respondent's costs of the application for security for costs.