Comlin Holdings Pty Ltd v Metlej Developments Pty Ltd

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Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Comlin Holdings Pty Ltd v Metlej Developments Pty Ltd [2018] NSWCA 271
Hearing dates: 12 November 2018
Decision date: 12 November 2018
Before: Basten JA
Decision:

(1)   Order that the appeal be stayed pending the appellant giving security in an amount of $85,000 by way of a caveatable interest over one of the properties in the ownership of Mrs Bassil.

 

(2)   Reserve liberty to the first and second respondents to apply to increase that amount in the event that the appellant is permitted to call further evidence.

 

(3)   Direct that the parties obtain a date from the Registrar for the hearing of the appellant’s motion for leave to call further evidence, to be listed in advance of the appeal.

 

(4)   Costs of today to be costs in the appeal.

 (5)   Liberty to apply if there is an impasse as to the form of the security.
Catchwords:

CIVIL PROCEDURE – appeal – security for costs – whether appellant likely to meet an adverse costs order – appellant a trustee – director offering security over property

  CIVIL PROCEDURE – appeal – application to call further evidence – likely effect on costs of appeal – direction that motion be heard before the date for hearing the appeal
Category:Procedural and other rulings
Parties: Comlin Holdings Pty Ltd (Applicant)
Metlej Developments Pty Ltd (First Respondent)
Nova Scotia Developments Pty Ltd (Second Respondent)
Kayrouz Constructions Pty Ltd (Third Respondent)
L.A.D.S. Developments Pty Ltd (Fourth Respondent)
Representation:

Counsel:
Mr P King (Applicant)
Mr L Gor (First and Second Respondents)

  Solicitors:
McKell Solicitors (Applicant)
Sachs Gerace Broome (Solicitors)
File Number(s): 2018/185926
 Decision under appeal 
Court or tribunal:
Supreme Court
Jurisdiction:
Equity Division
Citation:
[2018] NSWSC 761
Date of Decision:
28 May 2018
Before:
Parker J
File Number(s):
2014/285405

Judgment

  1. BASTEN JA: In this matter there is an appeal on foot brought by Comlin Holdings Pty Ltd against Metlej Developments Pty Ltd and other parties. The appellant was the unsuccessful party in a trial which lasted for four days before Parker J in the Equity Division. Orders were made on 28 May 2018. A notice of appeal was filed on 24 August 2018. There are four respondents to the appeal. An arrangement has been made which is acceptable to the third and fourth respondents with respect to security for the costs of the appeal.

  2. The matter before the Court is an application by the first and second respondents for an order by way of security. There are three issues which need to be addressed. The first is whether the Court is satisfied that the appellant would be good for costs if an adverse costs order were made against it in the appeal. The second question is whether, as has been proposed by the appellant, one of its directors may come forth and proffer security on its behalf and whether that should be accepted and if so in what amount. The third issue concerns an application by…

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Details
Case
[2018] NSWCA 271
Decision Date

CaseChat Overview and Summary

In the matter of *Comlin Holdings Pty Ltd v Metlej Developments Pty Ltd*, the New South Wales Court of Appeal considered an application for security for costs made by the respondents against the appellant. The dispute concerned the appellant's ability to satisfy a potential adverse costs order in an appeal it had lodged.

The primary legal issue before the Court was whether the appellant, a trustee, was likely to be able to meet an adverse costs order, and if not, what form of security would be appropriate. A secondary issue arose regarding the appellant's application to adduce further evidence on appeal, and its potential impact on the costs of the appeal.

Basten JA determined that the appellant, being a trustee, was unlikely to be able to meet an adverse costs order from its own resources. Consequently, the Court ordered that the appeal be stayed unless the appellant provided security in the amount of $85,000. This security was to be provided by way of a caveatable interest over a property owned by Mrs Bassil. The Court also directed that the appellant's motion to adduce further evidence be heard before the appeal itself, and reserved liberty to the respondents to apply to increase the security amount should the further evidence be permitted.

Orders

Orders of the court

(1) Order that the appeal be stayed pending the appellant giving security in an amount of $85,000 by way of a caveatable interest over one of the properties in the ownership of Mrs Bassil.

(2) Reserve liberty to the first and second respondents to apply to increase that amount in the event that the appellant is permitted to call further evidence.

(3) Direct that the parties obtain a date from the Registrar for the hearing of the appellant’s motion for leave to call further evidence, to be listed in advance of the appeal.

(4) Costs of today to be costs in the appeal.

(5) Liberty to apply if there is an impasse as to the form of the security.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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