Fazio Richards Pty Ltd v Ibis Way Pty Ltd

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FEDERAL COURT OF AUSTRALIA

Fazio Richards Pty Ltd v Ibis Way Pty Ltd [2016] FCA 1082

Appeal from: Fazio Richards Pty Ltd v Ibis Way Pty Ltd [2016] FCA 308
File number: VID 459 of 2016
Judge: DAVIES J
Date of judgment: 29 August 2016
Catchwords: PRACTICE AND PROCEDURE – application for security for costs – application made in the context of an appeal – power of the Court to order security for costs
Legislation:

Federal Court of Australia Act 1976 (Cth), s 56

Federal Court Rules 2011 (Cth), r 36.09

Cases cited:

Clack v Collins (No 1) [2010] FCA 513

Skyring v Sweeney [1999] FCA 61

Soh v Commonwealth of Australia [2008] FCA 1524

Date of hearing: 29 August 2016
Registry: Victoria
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Category: Catchwords
Number of paragraphs: 21
Counsel for the Second Appellant: The Second Appellant appeared in person and on behalf of the First Appellant
Counsel for the First and Third Respondents: T D Best
Solicitors for the First and Third Respondents SDR Law
Counsel for the Second Respondent: R Moore
Solicitors for the Second Respondent Logie-Smith Lanyon

ORDERS

VID 459 of 2016
BETWEEN:

FAZIO RICHARDS PTY LTD (ACN 079 728 662)

First Appellant

PAUL DAMIAN NELSON

Second Appellant

AND:

IBIS WAY PTY LTD (ACN 109 368 443)

First Respondent

ICON-IP PTY LTD (ACN 150 725 670)

Second Respondent

PETER STROVER

Third Respondent

JUDGE:

DAVIES J

DATE OF ORDER:

29 AUGUST 2016

THE COURT ORDERS THAT:

1.Order 8 of the Orders made 17 June 2016 be vacated.

2.Until further order, Annexure MAN-2 to the affidavit of Michael Andrew Nurse sworn on 9 June 2016 be maintained as confidential on the Court file and its contents not be published or otherwise disclosed in order to prevent prejudice to the administration of justice.

3.Until further order, Annexure MAN-6 to the affidavit of Michael Andrew Nurse sworn on 9 June 2016 be maintained as confidential on the Court file and its contents not be published or otherwise disclosed in order to prevent prejudice to the administration of justice.

4.The Second Respondent has leave to substitute page 53 of the transcript that appears at Annexure MAN-4 to the affidavit of Michael Andrew Nurse sworn on 9 June 2016, with a redacted copy of that page, the redactions being applied to the two amounts that are referred to at lines 12 and 13 of page 53 of the transcript.

5.The Appellants provide the Respondents’ security for costs in a form acceptable to the Respondents, or in the event of any dispute, in a form acceptable to the Registrar in the amount of $40,000, by 4.00pm on 3 October 2016.

6.If the Appellants do not comply with Order 5 within the time specified in that Order, the appeal be dismissed.

7.The costs of the Respondents’ applications be costs in the appeal.

8.The case management conference listed for 29 August 2016 be adjourned until 25 October 2016 at 2.15pm.

THE COURT…

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Details
Case
[2016] FCA 1082
Decision Date

CaseChat Overview and Summary

Fazio Richards Pty Ltd applied to the court for security for costs in the context of an appeal. Ibis Way Pty Ltd opposed the application. The court considered the application in the Federal Court of Australia. The primary legal issue before the court was whether it had the power to order security for costs in the context of an appeal and, if so, what amount should be ordered. The court also considered whether certain documents and transcripts should be redacted and maintained as confidential to prevent prejudice to the administration of justice.

The court found that it did have the power to order security for costs in the context of an appeal. It considered the relevant legislative provisions, case law, and the circumstances of the case in determining the appropriate amount of security. The court ordered that the Appellants provide security for costs in the amount of $40,000 by a specified date. It also ordered that certain documents and transcripts be redacted and maintained as confidential to prevent prejudice to the administration of justice. The court further directed the procedure for any future applications for leave to amend the grounds of appeal.

The court ordered that the Appellants provide the Respondents’ security for costs in a form acceptable to the Respondents, or in the event of any dispute, in a form acceptable to the Registrar in the amount of $40,000, by 4.00pm on 3 October 2016. If the Appellants do not comply with this order within the specified time, the appeal will be dismissed. The court also ordered that the costs of the Respondents’ applications be costs in the appeal and that the case management conference be adjourned until 25 October 2016 at 2.15pm. The court directed that any application for leave to amend the grounds of appeal be made returnable on 25 October 2016 at 2.15pm, and specified the deadlines for filing and serving affidavits and submissions in relation to such an application.

Orders

Orders of the court

1. Order 8 of the Orders made 17 June 2016 be vacated.

2. Until further order, Annexure MAN-2 to the affidavit of Michael Andrew Nurse sworn on 9 June 2016 be maintained as confidential on the Court file and its contents not be published or otherwise disclosed in order to prevent prejudice to the administration of justice.

3. Until further order, Annexure MAN-6 to the affidavit of Michael Andrew Nurse sworn on 9 June 2016 be maintained as confidential on the Court file and its contents not be published or otherwise disclosed in order to prevent prejudice to the administration of justice.

4. The Second Respondent has leave to substitute page 53 of the transcript that appears at Annexure MAN-4 to the affidavit of Michael Andrew Nurse sworn on 9 June 2016, with a redacted copy of that page, the redactions being applied to the two amounts that are referred to at lines 12 and 13 of page 53 of the transcript.

5. The Appellants provide the Respondents’ security for costs in a form acceptable to the Respondents, or in the event of any dispute, in a form acceptable to the Registrar in the amount of $40,000, by 4.00pm on 3 October 2016.

6. If the Appellants do not comply with Order 5 within the time specified in that Order, the appeal be dismissed.

7. The costs of the Respondents’ applications be costs in the appeal.

8. The case management conference listed for 29 August 2016 be adjourned until 25 October 2016 at 2.15pm.

THE COURT DIRECTS THAT:

9. Any application for leave to amend the grounds of appeal be made returnable on 25 October 2016 at 2.15pm.

10. The Appellants file and serve any affidavits in support of, and any submissions in relation to, an application for leave to amend the grounds of appeal by 4.00pm on 11 October 2016.

11. The Respondents file and serve any affidavits and submissions in opposition to an application for leave to amend the grounds of appeal by 4.00pm on 18 October 2016.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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