Cornerstone Property and Development Pty Ltd v Suellen Properties Pty Ltd

The case before the court was an action brought by Cornerstone Property and Development Pty Ltd against Suellen Properties Pty Ltd and two individuals, the latter being the directors of the first defendant company. The action sought to enforce certain contractual obligations. The individual defendants had brought the proceeding in the name of the company under section 237 of the Corporations Act 2001 (Cth). The order permitting this also provided that the individuals should be personally liable for the costs of the proceeding. The individuals were neither served nor made an application in relation to the question of costs. The court was required to determine whether it was appropriate that a costs order be made against them personally.

The court found that the individuals had brought the proceeding in the company’s name without any application for leave or exemption from personal liability for costs. The court held that it was appropriate to make a costs order against the individuals personally, as they had not followed the proper procedure. The court also found that the individuals had not raised any substantial question of law or fact that would justify an order for costs against the plaintiff. The court noted that the individuals had the option to seek an order for indemnity from the company, but they had not done so.

The orders of the court were that the plaintiff, Cornerstone Property and Development Pty Ltd, pay the costs of the proceeding of both the first and second defendants. The court held that the individuals were personally liable for the costs of the proceeding as provided in the order permitting them to bring the action in the company’s name. The court did not make any order for indemnity against the company.