Gabstone Pty Ltd v Camisa Nominees Pty Ltd

Gabstone Pty Ltd and Old Papa's Franchise Systems Pty Ltd commenced proceedings against Camisa Nominees Pty Ltd, Fieldgate Enterprises Pty Ltd, and individuals Corad Pizzi and Maria Pizzi, in relation to a retail tenancy lease agreement. The defendants applied for an order for security for costs in the amount of $75,000, arguing that the plaintiffs were impecunious and likely unable to pay costs if they were unsuccessful in their claims. The plaintiffs opposed the application, contending that they were in reality defending against the defendants' threats and that they had a strong case. The court considered the relevant factors in determining whether to order security for costs, including the plaintiffs' impecuniosity, prospects of success, and the bona fides of the application. The court found that while the plaintiffs were impecunious, they were in reality defending against the defendants' threats and that ordering security for costs would stultify their action. Therefore, the application for security for costs was dismissed.

The court considered the plaintiffs' impecuniosity, prospects of success, and the bona fides of the application in determining whether to order security for costs. The court found that while the plaintiffs were impecunious, they were in reality defending against the defendants' threats and that ordering security for costs would stultify their action. Therefore, the application for security for costs was dismissed. No orders were made as to costs.