Garslev Holdings Pty Ltd v Overdean Developments Pty Ltd

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Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Garslev Holdings Pty Ltd v Overdean Developments Pty Ltd [2022] NSWCA 156
Hearing dates: On the papers
Decision date: 18 August 2022
Before: Leeming JA
Decision:

Application to vary the regime for security for costs dismissed, with costs

Catchwords:

PRACTICE – appeals – security for costs – variation – liberty to apply – order to pay $25,000 into court or as otherwise agreed by way of security for costs – appellant unilaterally offers alternative form of security – respondent rejects offer – no basis to vary regime

Legislation Cited:

Civil Procedure Act 2005 (NSW), s 56

Uniform Civil Procedure Rules 2005 (NSW), r 51.50(2A)

Cases Cited:

Expense Reduction Analysts Group Pty Ltd v Armstrong Strategic Management and Marketing Pty Ltd (2013) 250 CLR 303; [2013] HCA 46

Category:Procedural rulings
Parties:

Garlev Holdings Pty Ltd (First Appellant)
Leonardus Gerardus Smits (Second Appellant)
Peter Shaj Mahommed (Third Appellant)
Vestecorp Financial Services Pty Ltd (Fourth Appellant)
Jacobus Johannes Smits (Fifth Appellant)

Overdean Developments Pty Ltd (First Respondent)
Brian Arthur Dean (Second Respondent)
BAD Nominees (NSW) Pty Ltd (Third Respondent)
Representation:

Counsel:
L Smits (Solicitor for Appellants)
D Allen (Respondents)

Solicitors:
Murray Laws Pty Ltd (Appellants)
Kekatos Lawyers (Respondents)
File Number(s): 2021/349602
Publication restriction: Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity
Citation:

[2021] NSWSC 1482

Date of Decision:
17 November 2021
Before:
Williams J
File Number(s):
2018/384191

Judgment

  1. LEEMING JA: The appellants have filed an appeal in this Court, which is presently stayed in light of the appellants’ non-compliance with orders for security for costs.

  2. Following a hearing on 4 July 2022, I made the following orders:

“1. Order that the appellants provide security for the respondents’ costs of the appeal in the amount of $25,000, in such form as may be agreed between them, or by way of payment to the Registrar of this Court.

2. The security be provided within 28 days of today, pending which the appeal is stayed.

3. Grant liberty to apply to me on three business days’ notice by email to my associate.

4. Note the parties’ agreement that the appeal be listed for a two day hearing, on the basis that Mr Smits’ oral submissions be strictly confined to one day, and Mr Allen’s be confined to no more than three and a half hours, leaving an hour for Mr Smits to reply.

5. The parties’ costs of the notice of motion of 24 March 2022 be each parties’ costs of the appeal.”

  1. It should be said that the notice of appeal is very long (it is 44 single-spaced pages with 106 paragraphs many of which have subparagraphs, and has been treated as amounting to the appellants’ submissions), and there have been suggestions that the appeal be set down for four days, which struck me as excessive. The discipline imposed by order 4 reflected statements made by each of Mr Smits and Mr Allen, and…

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Details
Case
[2022] NSWCA 156
Decision Date

CaseChat Overview and Summary

In *Garslev Holdings Pty Ltd v Overdean Developments Pty Ltd*, the appellant, Garslev Holdings Pty Ltd, sought to vary an existing court order requiring it to pay $25,000 into court as security for costs, or provide alternative security as agreed by the parties. The respondent, Overdean Developments Pty Ltd, had rejected the appellant's unilateral offer of an alternative form of security. The application was heard by Leeming JA.

The central legal issue before the court was whether there was a sufficient basis to vary the established regime for security for costs. Specifically, the court had to determine if the appellant's unilateral offer, which had been rejected by the respondent, provided grounds for altering the original order.

Leeming JA found no basis to vary the existing order. The original order provided a clear mechanism for security for costs, either by payment into court or by agreement between the parties. The appellant's attempt to unilaterally substitute an alternative form of security, without the respondent's agreement, did not satisfy the conditions of the order. The court applied the principle that where an order for security for costs has been made, and the parties have not agreed to an alternative, the terms of the original order should generally be upheld unless there are compelling reasons to depart from them.

The application to vary the regime for security for costs was dismissed, and the appellant was ordered to pay the respondent's costs.

Orders

Orders of the court

Application to vary the regime for security for costs dismissed, with costs

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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