Frigger v Banning (No 4)

Case [2017] FCA 900


FEDERAL COURT OF AUSTRALIA

Frigger v Banning (No 4) [2017] FCA 900

File number: WAD 607 of 2015
Judge: BARKER J
Date of judgment: 4 August 2017
Catchwords: PRACTICE AND PROCEDURE – security for costs – application for variation of costs order – whether costs should be payable forthwith – where quantum of security varied previously – application dismissed
Cases cited:

Frigger v Banning [2016] FCA 359

Frigger v Banning (No 2) [2016] FCA 749

Date of hearing: Determined on the papers
Registry: Western Australia
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Corporations and Corporate Insolvency
Category: Catchwords
Number of paragraphs: 17
Counsel for the Applicants: The Applicants were self-represented
Counsel for the Respondents: Mr TR Stephenson
Solicitor for the Respondents: Eastwood Sweeney Law

ORDERS

WAD 607 of 2015
BETWEEN:

ANGELA CECILIA THERESA FRIGGER

First Applicant

HARTMUT HUBERT JOSEF FRIGGER

Second Applicant

AND:

SANDRA MAY BANNING

First Respondent

DONALD CAMPBELL-SMITH

Second Respondent

PROFESSIONAL SERVICES OF AUSTRALIA PTY LTD ACN 082 879 641 (and another named in the Schedule)

Third Respondent

JUDGE:

BARKER J

DATE OF ORDER:

4 AUGUST 2017

THE COURT ORDERS THAT:

1.The respondents’ application dated 17 February 2017 for variation of the costs order made 13 April 2016 be refused.

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


REASONS FOR JUDGMENT

BARKER J:

  1. On 13 April 2016, I handed down a reserved decision on the respondents’ application for security for costs.  I allowed that application and made an order that the applicants pay $75,000 into Court by way of security.  I also ordered that the applicants do pay the respondents’ costs of the application to be taxed, if not agreed. 

  2. In relation to the order for costs, I did not expressly order that the costs should be payable “forthwith”. 

  3. See the reasons for decision at Frigger v Banning [2016] FCA 359.

  4. These reasons were handed down in open court on 13 April 2016.

  5. Subsequently, the applicants applied to vary the amount of the security.  On 24 June 2016, I made an order varying the quantum so that it was then required to be paid in the sum of $60,000.

  6. So far as the costs of the applicants’ interlocutory application for such relief was concerned, which they filed 31 May 2016, I ordered that the costs be costs in the cause.

  7. See the reasons for decision in Frigger v Banning (No 2) [2016] FCA 749

  8. The respondents subsequently, on 17 February 2017, requested the Court to amend the order for costs made 13 April 2016 so that those costs would be payable forthwith.

  9. In their letter dated 17 February 2017, the solicitors for the respondents advanced the following submissions in support of the request for variation of the costs order:

    It is our understanding that counsel understood that the orders made by Justice Barker could be taxed prior to the conclusion of the matter and accordingly, no order was sought that those costs be payable forthwith. 

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AGLC
Frigger v Banning (No 4) [2017] FCA 900
Case
[2017] FCA 900
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Frigger v Banning (No 4) dealt with an application for variation of a costs order, specifically concerning the payment of security for costs. The appellant, Frigger, sought to challenge an earlier order that had required certain costs to be paid immediately. This order had already been the subject of a previous variation, which had altered the amount of security required. The nature of the dispute was whether the costs should continue to be payable immediately or if there should be a further modification to the terms of the security for costs.

The central legal issue before the court was whether the appellant's application for a variation of the costs order should be granted. This involved considering the principles surrounding security for costs, particularly the circumstances under which such an order might be varied and the appropriate timing for payment of the costs. The court had to balance the need for finality in litigation costs with the fairness of requiring immediate payment of costs in light of the previous variation.

The court dismissed the respondent's application for a further variation of the costs order. In reaching its decision, the court emphasised the importance of finality in litigation and the need to avoid excessive litigation over costs. It held that the appellant had not provided sufficient grounds to justify a further variation, particularly given the recent history of the order in question. The court found that the circumstances did not warrant an immediate payment of costs, and thus refused the application. Consequently, the court upheld the original terms of the security for costs order.

Orders

Orders of the court

1. The respondents’ application dated 17 February 2017 for variation of the costs order made 13 April 2016 be refused.

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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