Cosdean Investments Pty Ltd v Football Federation of Australia Limited (No 2)

Cosdean Investments Pty Ltd, represented by its director Mr Cosenza, sought further security for costs from the Football Federation of Australia Limited and Soccer NSW, which were represented by Mr. and Ms. Doe. The dispute involved whether Cosdean, which had limited funds and only one arms-length unsecured creditor, should have its financial situation considered when determining the amount of security for costs required. The case was heard in the Supreme Court of New South Wales.

The primary legal issue was whether Cosdean's pre-existing lack of funds should be considered when determining the amount of security for costs required, especially given that Cosdean had only one arms-length unsecured creditor. The court needed to balance the financial position of Cosdean against the potential merits of its claim and the need to ensure that the respondents would not be unfairly prejudiced if the claim was unsuccessful. The court also needed to consider the impact of Cosdean's financial situation on the administration of justice and the potential for abuse of the security for costs process.

In delivering the judgment, the court held that Cosdean's lack of funds pre-existed the alleged wrongful conduct. The court found that it could not conclude whether the respondents' alleged wrongful conduct significantly impaired Cosdean's financial prospects, but it assumed that Cosdean had reasonable prospects of succeeding to some extent in its claim. The court was not persuaded that Cosdean's financial position was attributable to the conduct of the respondents. The court also considered other factors, such as the length of the further hearing and the need for the respondents to address further evidence from Cosdean. The court ordered that Cosdean provide an additional $60,000 to FFA and $40,000 to Soccer NSW by way of security for costs. The parties were given an opportunity to address the manner in which the further security for costs should be paid and the consequences of its non-payment.

The court ordered Cosdean to provide an additional $60,000 to FFA and $40,000 to Soccer NSW by way of security for costs. The parties were given an opportunity to address the manner in which the further security for costs should be paid and the consequences of its non-payment. The court did not make any other orders.