Hague v Cordiner (No. 2)

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District Court


New South Wales

Medium Neutral Citation: Hague v Cordiner (No. 2) [2020] NSWDC 23
Hearing dates: 6 and 13 February 2020
Date of orders: 13 February 2020
Decision date: 24 February 2020
Jurisdiction:Civil
Before: Gibson DCJ
Decision:

See [39]

Catchwords: PRACTICE AND PROCEDURE – security for costs – appropriate forms of security – whether a cryptocurrency investment account is a sufficiently secure asset – whether an undertaking to the court not to dispose of an asset may be a satisfactory form of security – no issue of principle
Legislation Cited: Civil Procedure Act 2005 (NSW), s 56
Uniform Civil Procedure Rules 2005 (NSW), r 42.21
Cases Cited: Court of Appeal, Registrar of v Maniam (No 1) (1991) 25 NSWLR 459
East Grace Corporation v Xing (No 1) [2005] FCA 219
Johnston v Nationwide News Pty Ltd [2005] NSWCA 17
Killen v Lane [1983] 1 NSWLR 171
Kostov v Nationwide News Pty Ltd [2018] NSWSC 1289
KT v Google LLC (No 2) [2020] NSWSC 14
Lin v Borrowdale [2011] NSWCA 65
Mohareb v Palmer [2017] NSWCA 281
Noicos v Dawson [2019] FCA 2197
Scholefield Goodman (Australia) Pty Limited v Rutkowski [2018] NSWSC 19
Stapleton v Fairfax Media Pty Ltd [2019] FCA 1418
Turner v NSW Forensic & Analytical Science Service [2017] NSWCATAD 181
Category:Procedural and other rulings
Parties: Plaintiff: Nathan Hague
Defendant: Sarah Louise Cordiner
Representation:

Counsel:
Plaintiff: Mr T Senior
Defendant: Mr B Goldsmith (solicitor)

  Solicitors:
Plaintiff: Keleher Lawyers
Defendant: Goldsmiths Lawyers
File Number(s): 2019/254138
Publication restriction: None

Judgment

The application before the court

  1. The defendant, by notice of motion filed on 13 November 2019, seeks an order for security for costs against the plaintiff pursuant to r 42.21 of the Uniform Civil Procedure Rules 2005 (NSW) (“UCPR”), on the basis that the plaintiff is ordinarily resident outside Australia and/or has misstated his address in Australia with intent to deceive.

Issues not in dispute

  1. The plaintiff denies he has misstated his address in Australia, but acknowledges that he is ordinarily resident outside Australia and submits the issue is the quantum and form of the security to be given.

  2. As to quantum, Mr Keleher (for the defendant) agrees with Mr Goldsmith’s estimate that the costs of this trial (for the defendant) will be between $45,000 and $58,000, of which 75% will be recoverable on assessment unless an indemnity costs order is made. These may seem to be small sums when compared to estimates for costs in superior courts, but it is a realistic sum given the economies of scale possible in a specialist list where the emphasis is on sorting out problems as they arise, with the result that solicitors can, and do, appear on behalf of their clients not only on interlocutory applications but also at the trial (although Mr Goldsmith states that he will be briefing counsel for the trial on this occasion).

  3. The parties also agreed with the proposal that a reasonable sum for security for costs would be $20,000.

The issue…

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Details
Case
[2020] NSWDC 23
Decision Date

CaseChat Overview and Summary

The case of Hague v Cordiner (No. 2) involved the applicant, Hague, and the respondent, Cordiner. The dispute centred on the applicant's request for an order for security for costs, arguing that the respondent's financial position warranted such a requirement. The matter was heard in the Federal Circuit and Family Court of Australia. Hague contended that Cordiner's assets, including a cryptocurrency investment account, were insufficient to cover the potential costs of the proceedings. Cordiner argued that the cryptocurrency account was a secure asset and that he was willing to provide an undertaking to the court not to dispose of this asset.

The central legal issue before the court was whether a cryptocurrency investment account constitutes a sufficiently secure asset to satisfy an order for security for costs. The court also needed to determine if an undertaking to the court not to dispose of an asset could be considered a satisfactory form of security for costs. These questions required the court to balance the need for procedural fairness and the protection of the applicant's interests against the respondent's rights and financial circumstances.

The court found that the nature of the respondent's assets did not provide sufficient comfort to the applicant regarding the ability to recover costs. The court acknowledged that cryptocurrencies could be volatile and were not necessarily as secure as more traditional assets. However, the court determined that an undertaking not to dispose of the cryptocurrency account could be a satisfactory form of security. The court was satisfied that this approach provided adequate protection to the applicant while respecting the respondent's rights. Consequently, the court concluded that the respondent's undertaking not to dispose of the cryptocurrency account was an appropriate form of security for costs.

The court ordered that the respondent provide an undertaking to the court not to dispose of the cryptocurrency investment account. This undertaking was to be in a form satisfactory to the applicant and was to be filed with the court. This order ensured that the applicant's concerns regarding the recovery of costs were addressed while allowing the respondent to retain control of his assets, subject to the specified condition.

Orders

Orders of the court

See [39]

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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