Great Australian Operations Pty Ltd (Receivers and Managers Appointed) v Washington H. Soul Pattinson and Company Limited (No. 2)

In the matter of Great Australian Operations Pty Ltd (Receivers and Managers Appointed) versus Washington H. Soul Pattinson and Company Limited, the parties were engaged in a legal dispute concerning the validity of the retainer of the plaintiff's solicitor and the associated costs. This case was heard in the Supreme Court of New South Wales. The primary dispute was whether the defendant's motion to strike out part of the plaintiff's claim was successful and if the issue of the validity of the retainer of the plaintiff's solicitor should proceed to trial. Additionally, the defendant appealed against the Court's refusal to strike out the entire plaintiff's claim and sought an order for security for costs against the plaintiff. The defendant argued that the plaintiff should pay costs either now or as part of a security for costs order.

The court was required to determine whether the costs should be reserved or paid immediately by one party or the other. It also had to decide whether security for costs should be ordered against the plaintiff and, if so, the extent to which past costs should be included in the order. Furthermore, the court needed to determine the appropriate amount of any security for costs that should be paid by the plaintiff.

The court's reasoning was focused on the principles of procedural fairness and the need to balance the rights of both parties. The court found that the defendant's motion to strike out part of the plaintiff's claim was partially successful, but the issue of the validity of the retainer of the plaintiff's solicitor remained for trial. The court upheld the refusal to strike out the entire claim and rejected the defendant's appeal. Regarding security for costs, the court ordered that a portion of past costs should be included in the security for costs. The amount of the security for costs was determined based on a percentage of the plaintiff's estimated costs and the potential costs of the trial.