Haswell v Commonwealth of Australia (No 2)

In the case of Haswell v Commonwealth of Australia (No 2), the court was tasked with determining the appropriate amount of additional security for costs that the Commonwealth should provide in relation to a representative proceeding. The central issue was the accuracy of the time estimates provided by the Commonwealth's solicitors for work to be completed before the initial trial and at the second mediation. The court considered whether these estimates were reasonable and proportionate to the work required.

The court examined the affidavits and evidence presented, noting that while the estimates were not necessarily disingenuous, they appeared to be excessive in certain respects. The court highlighted two main areas of concern: the extensive time proposed for the preparation of written submissions, which traditionally falls under the responsibility of counsel, and the disproportionate number of hours estimated for the second mediation. The court found these estimates to be unreasonable given its experience with similar proceedings.

In determining the appropriate amount of additional security, the court balanced the need for some further security against the perceived inaccuracies in the estimates. It concluded that an amount of approximately half of what was sought by the Commonwealth was fair. The court ordered that $500,000 should be provided before the second mediation, and the remaining $2.5 million should be provided a fortnight before the commencement of the initial trial. This decision reflects the need for a pragmatic and efficient approach to resolving security for costs applications.