Haides Pty Ltd v Canberra Drilling Rigs Pty Ltd

In *Haides Pty Ltd v Canberra Drilling Rigs Pty Ltd*, the Supreme Court of the Australian Capital Territory considered an application for security for costs brought by the respondents against the appellant, Haides Pty Ltd. The dispute arose in the context of an appeal, where the respondents sought an order requiring the appellant to provide security for their costs of the appeal.

The central legal issue before Murrell CJ was whether the appellant, a corporate entity, was impecunious to such an extent that an order for security for costs should be made. This required the court to assess the appellant's financial position and determine if there was a real risk that the respondents would be unable to recover their costs of the appeal if they were successful. The court also had to consider the appropriate amount of security to be ordered.

Murrell CJ reasoned that the evidence presented demonstrated that the appellant lacked sufficient assets to meet a potential costs order. Applying the principles governing applications for security for costs against impecunious companies, the court found that it was just and necessary to order security. The court determined that an amount of $30,000.00 was appropriate, to be provided either in cash or by way of an irrevocable bank guarantee.

The court ordered that the appellant provide the specified security within a stipulated timeframe. Failure to comply with this order would result in the appeal being deemed dismissed, with the appellant liable for the respondents' costs of the appeal on a party and party basis. Additionally, the appellant was ordered to pay the first respondent's costs of the application for security.