Equititrust Limited v Tucker

Equititrust Limited brought proceedings against Tucker and others, alleging breaches of fiduciary duty and other claims. The defendants sought to have the claims struck out, arguing that they disclosed no reasonable cause of action or would prejudice or delay the fair trial of the proceeding. The defendants also challenged the form and amount of security for costs that the plaintiff proposed. The case was heard in the Supreme Court of New South Wales.

The court considered whether the plaintiff’s claims were legally sufficient and whether the form of security for costs proposed was appropriate. The defendants argued that the plaintiff's claims were speculative and based on insufficient facts. They also contended that the plaintiff’s proposed security for costs, a deed of indemnity involving a foreign third party insurer, was not acceptable as it imposed an undue burden on the defendants.

The court held that while some of the claims may not disclose a reasonable cause of action, others were sufficient to proceed. The court further found that the plaintiff's proposed security for costs was acceptable but noted that the parties should attempt to agree on a more suitable amount. The court directed the parties to confer and draft an appropriate order reflecting these decisions, with a further hearing scheduled if they could not agree. The court also indicated it would hear submissions on costs.

Pending agreement, the parties are directed to confer with a view to providing a draft order reflecting the decision of the court in relation to the strike out applications, and the applications for security for costs. If the parties cannot agree, the matter will be listed for further hearing. The court will also hear the parties as to costs.