Gerrard v Slamar

In the case of Domelia Pty Ltd as Trustee for the Keith Bradford Family Trust, Bradford Personnel Trust, and Bradford Personnel No 2 Trust & Anor v Paiker, the defendant sought an order for security for costs against the first plaintiff under section 1335 of the Corporations Act 2001 (Cth) or the court's inherent jurisdiction. The defendant sought security in the sum of $125,553.50. The plaintiffs argued that they had the capacity to meet any order for costs that might be made against them in the action. The court found that the defendant's case was substantially built on conjecture and that there was no credible evidence that the first plaintiff would be unable to meet any order for costs. The court dismissed the application for security for costs. The court found that the costs sought by the defendant were excessive and that an appropriate figure would be substantially less than the amount claimed, likely no more than $80,000. The court's decision was based on the financial information before it, and the defendant had the option to make a further application should circumstances change.