Coonwarra Pty Ltd v Cornonero Pty Ltd (No 2)

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL COURT

COMMERCIAL LIST

S ECI 2017 00190

COONWARRA PTY LTD

Plaintiff

v  

CORNONERO PTY LTD & ORS

(according to the attached schedule)

Defendant

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JUDGE:	Derham AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	25 July 2019
DATE OF JUDGMENT:	23 October 2019
CASE MAY BE CITED AS:	Coonwarra Pty Ltd v Cornonero Pty Ltd (No 2)
MEDIUM NEUTRAL CITATION:	[2019] VSC 702

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PRACTICE AND PROCEDURE – Security for costs – Whether plaintiff’s impecuniosity may have been caused or contributed to by fifth defendant – Supreme Court (General Civil Procedure) Rules 2015, rr 62.02(1), 62.04 – Corporations Act 2001 (Cth), s 1335(1).

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr A T Schlicht	Simon Nixon & Associates
For the Fifth Defendant	Mr C G Juebner	Russell Kennedy Lawyers

TABLE OF CONTENTS

Introduction......................................................................................................................................... 1

Summary of conclusions................................................................................................................... 1

Evidence............................................................................................................................................... 3

Summary of the claims and facts..................................................................................................... 3

December 2014 loan...................................................................................................................... 8

August 2015 loan........................................................................................................................... 8

February 2016 loan...................................................................................................................... 12

Submissions...................................................................................................................................... 14

Fifth defendant’s submissions.................................................................................................. 14

Plaintiff’s submissions............................................................................................................... 16

Consideration.................................................................................................................................... 17

Conclusion......................................................................................................................................... 22

HIS HONOUR:

Introduction

1. The fifth defendant, Berkeley Capital Partners Pty Ltd (BCP), applies under Order 62 of the Supreme Court (General Civil Procedure) Rules 2015 (Vic) (Rules) and s 1335(1) of the Corporations Act 2001 (Cth) for an order that the plaintiff (Coonwarra) give security for BCP’s costs of defending the proceeding.[1]

   [1]The application is made by summons filed on the 11 April 2019.

1. There has been an earlier application for security for costs made by the third defendant, Mr Peter Andrew Breckenridge (Breckenridge). In June 2018 I ordered security for costs of the proceeding in favour of Breckenridge.[2]  I will refer to parts of those reasons in the course of these reasons. However, it is important to observe that this application concerns a different defendant against whom different claims are made and that the material now available to the plaintiff is more detailed and, it is contended, provides a solid foundation for the ground upon which it resists giving security.

   [2]Order made on 20 June 2018.  The reasons are published in Coonwarra Pty Ltd v Cornonero Pty Ltd [2018] VSC 333 (earlier decision).

1. The applicable law is well settled by a variety of decisions of this Court and many other courts.[3]  It is unnecessary to rehearse the principles.  I will deal with the applicable law as necessary in the course of considering the evidence and submissions.

   [3]Colmax Glass Pty Ltd v Polytrade Pty Ltd [2013] VSC 311; Cox v Cox & Ors [2013] VSC 318; US Realty Investments LLC #1 & Ors v Need [2013] VSC 590; Opes Prime Group Ltd & Anor v Niako Investments Pty Ltd & Anor [2014] VSC 414; Imam Ali Islamic Centre v Imam Ali Islamic Centre Inc [2015] VSC 692; VonMarburg v Aldred & Anor (No 3) [2017] VSC 146; and ACN…