Re: ENERGY DRILLING INC.
And: PETROZ N.L.; PACIFIC SUPPLIER INC.; ENSEARCH CHARTERING PTY.
LIMITED and ZWEITE BETEILIGUNGSGESELLSCHAFT DAMMTORWALL mbh
No. G 1361 of 1988
FED No. 184
Practice and Procedure
COURT
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
Gummow J.(1)
CATCHWORDS
Practice and Procedure - Security for costs - applicant incorporated outside Australia - s. 56 (1) of Federal Court of Australia Act 1976 and Order 28 Rule 3 (1) of the Federal Court Rules - observations on matters relevant to exercise of discretion.
Trade Practices Act 1974
Bell Wholesale Co. Ltd. v Gates Export Corporation (1984) 2 FCR 1
Cameron's Unit Services Pty. Ltd. v Kevin R. Whelpton & Associates (Australia) Pty. Ltd. (1986) 13 FCR 46
Porzelack KG v Porzelack (UK) Ltd. (1987) 1 WLR 420
Lord Aldborough v Burton (1834) 2 My. & K. 401; 39 ER 997
Ogilvie v Herne (1805) 11 Ves. Jun. 598; 32 ER 1220
In re T. Donnelly, deceased (1927) 44 WN (NSW) 72
Elna Australia Pty. Ltd. v International Computers (Aust.) Pty. Ltd. (1987) 14 FCR 461
Kent Heating Ltd. v Cook-on Gas Products Pty. Ltd. (1984) 59 ALR 277
CBS Records Australia Ltd. v Telmak Teleproducts (Aust.) Pty. Ltd. (1987) 72 ALR 270
HEARING
SYDNEY
#DATE 3:5:1989
Counsel and Solicitors for M.A. Pembroke Esq.
the Applicant: instructed by
Messrs. Hunt & Hunt.
Counsel and Solicitors for P.M. Biscoe Esq.
the First, Second and instructed by
Third Respondents: Messrs. Phillips Fox.
ORDER
The applicant provide security for costs of the first, second and third respondents in the amount of $20,000 in a form agreed between the solicitors for the parties, failing which in a form acceptable to the District Registrar.
Liberty be granted to the first, second and third respondents to apply to seek further security in respect of the prosecution of the proceedings after discovery and inspection of documents.
The proceedings be stayed until Order (1) has been complied with.
The costs of the present motion be costs in the substantive proceedings.
Note: Settlement and entry of orders is dealt with by Order 36 of the Federal Court Rules.
JUDGE1
This is a motion by the first, second and third respondents seeking an order that the applicant provide security for their costs in such sum as the Court considers appropriate.
This motion was heard on 29 April 1989, immediately after, on the motion of the fourth respondent, an order had been made dismissing the proceedings against the fourth respondent.
The applicant is duly incorporated in the Republic of Liberia. So is the second respondent. The first and third respondents are incorporated in the Australian Capital Territory.
Sub-section…
Keep reading for free
Create a free CaseChat account to read Energy Drilling Inc v Petroz NL and more:
- Read every judgment in full
- Ask AI and get answers linked to paragraphs
- See how each paragraph was cited in later cases
- Download judgments as PDF or Word
One click creates your free account or signs you in.
By continuing you agree to the Terms and Privacy Policy.
- Case
- [1989] FCA 184
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court were whether the statutory and rule-based requirements for security for costs applied to an applicant incorporated outside Australia and, if so, what the appropriate exercise of discretion would be in the circumstances of this case. The court needed to interpret sections 56(1) of the Federal Court of Australia Act 1976 and Order 28 Rule 3(1) of the Federal Court Rules to determine the scope and application of these provisions.
The court found that the statutory provisions and court rules indeed applied to the applicant, given its incorporation outside Australia. The court emphasised the need for a cautious exercise of discretion when considering security for costs in such cases, taking into account the potential financial implications for the applicant and the respondents. The court determined that the applicant should provide security for the costs of the first, second, and third respondents in the amount of $20,000. Additionally, the court granted liberty to the respondents to apply for further security after the discovery and inspection of documents, and it stayed the proceedings until the applicant complied with the security requirement. The costs of the present motion were ordered to be costs in the substantive proceedings.
Orders
Orders of the court
The applicant provide security for costs of the first, second and third respondents in the amount of $20,000 in a form agreed between the solicitors for the parties, failing which in a form acceptable to the District Registrar.
Liberty be granted to the first, second and third respondents to apply to seek further security in respect of the prosecution of the proceedings after discovery and inspection of documents.
The proceedings be stayed until Order (1) has been complied with.
The costs of the present motion be costs in the substantive proceedings.
Note: Settlement and entry of orders is dealt with by Order 36 of the Federal Court Rules.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.