Darwin Offshore Logistics Base Pty Ltd v Cox

Darwin Offshore Logistics Base Pty Ltd (DOLB) brought proceedings against Cox in the Federal Circuit and Family Court of Australia, alleging breaches of contract and other related claims. Cox applied for security for costs, arguing that DOLB's financial position was such that they may be unable to pay costs if they lost the case. The court was required to determine whether DOLB could provide sufficient evidence of their financial position to meet the threshold for security for costs and whether Cox had established that DOLB was likely to be unable to pay costs if ordered to do so.

The court considered the evidence provided by DOLB regarding their financial position, including statements from DOLB's financial controller and directors. The court held that DOLB had not provided sufficient evidence to establish that they could meet the threshold for security for costs, as the evidence did not provide a clear picture of DOLB's financial position. The court also found that Cox had made out a case that DOLB was likely to be unable to pay costs if ordered to do so. The court granted Cox's application for security for costs, ordering DOLB to provide security in the amount of $1,000,000 within 28 days.