Fanma Pty Ltd v Ryan Kay

Fanma Pty Ltd sought to enforce a judgment debt against Ryan Kay, the first defendant. The second defendant, who had initially agreed to indemnify Fanma against costs up to a certain amount, applied for an order that Fanma provide further security for costs. The application was made after a delay of several months. The Federal Circuit Court was required to determine whether there had been a material change in circumstances since the first application for security for costs, and whether the delay warranted refusal of the application. The court considered the quantum of the security sought and the potential financial position of Fanma.

The court noted that the first application for security for costs was made shortly after the commencement of the proceeding. Since then, there had been a significant increase in the amount of costs incurred and anticipated. The second defendant had also provided evidence of Fanma's financial position, which indicated that it was experiencing financial difficulties. The court found that there had been a material change in circumstances since the first application for security for costs. The delay in bringing the application for further security for costs was not considered to be a bar to the application. The court held that the quantum of the security sought was reasonable and ordered Fanma to provide further security for costs.

The court further considered that Fanma had not provided any evidence to rebut the presumption that it was impecunious. The court held that Fanma was required to provide further security for costs in the amount sought by the second defendant. The court ordered Fanma to provide further security for costs within 14 days of the date of the judgment.