HP Mercantile Pty Ltd v Plevey

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Court of Appeal

New South Wales

Case Title: HP Mercantile Pty Ltd v Plevey
Medium Neutral Citation: [2014] NSWCA 374
Hearing Date(s): 30 October 2014
Decision Date: 30 October 2014
Before: Meagher JA at [1];
Barrett JA at [1]
Decision:

1. Dismiss Summons seeking leave to appeal.
2. Order applicant to pay respondents' costs.
3. Grant leave to respondents' to assess and enforce costs order forthwith.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: APPEAL - leave to appeal - where no reasons for judgment given ordering security for costs - whether appropriate vehicle to consider issues arising

COSTS - security for costs - where two separate sets of proceedings - whether defendant in one proceeding may obtain security for costs incurred in other proceeding in which it is moving party - UCPR, r 42.21(1), Corporations Act 2001 (Cth), s 1335(1)
Legislation Cited: Corporations Act 2001 (Cth) s 1335
Trade Practices Act 1974 (Cth)
Uniform Civil Procedure Rules 2005 (NSW) rr 28.5, 42.21(1)
Cases Cited: ABB Service Pty Ltd v Pyrmont Light Rail Co Ltd [2006] NSWSC 187; 57 ACSR 122
Demag-Lauchhammer Maschinenbau Und Stahlbau G.m.b.H v John Holland Constructions Pty Ltd [1966] 2 NSWR 3
Rajski v Computer Manufacture & Design Pty Ltd [1983] 2 NSWLR 122
Winterfield v Bradnum (1878) 3 QBD 23
Category: Interlocutory applications
Parties: HP Mercantile Pty Ltd (Applicant)
Gregory Plevey (First Respondent)
Jillian Plevey (Second Respondent)
Antony Kubicki (Third Respondent)
Mark Venables (Fourth Respondent)
Representation
- Counsel: Counsel:
P M Knowles (Applicant)
B Kremer (Defendants)
- Solicitors: Solicitors:
Versace McKenzie Lawyers (Applicant)
Tiernan Lawyers (First and Second Respondents)
Jonathan Eastoe (Third and Fourth Respondents)
File Number(s): 2014/160423
Decision Under Appeal
- Before: Sackar J
- Date of Decision:  08 May 2014
- Court File Number(s): 2012/201234, 2012/203944, 2012/203945

JUDGMENT

  1. THE COURT: The applicant (HPM) seeks leave to appeal from orders made by Sackar J on 8 May 2014 that it provide security for the costs of the respondents (Mr & Mrs Plevey, Mr Kubicki in his personal capacity and as executor of his deceased wife's estate, and Mr Venables) as defendants in separate proceedings brought against them by HPM and in proceedings against HPM brought by each of them by way of defence to its claims. For convenience we refer to each set of parties as a respondent, and to them collectively as the respondents. The amount of security ordered to be provided was $100,000 in all and $33,333.34 for each respondent.

  2. Those orders for security were made in the following circumstances. In 2012, HPM brought proceedings in the District Court against the respondents to recover loans made to them by…

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Details
Case
[2014] NSWCA 374
Decision Date

CaseChat Overview and Summary

HP Mercantile Pty Ltd (the applicant) sought leave to appeal from an order made by a judge of the Supreme Court of New South Wales, which had directed the applicant to provide security for the costs of Plevey and others (the respondents). The dispute concerned two separate sets of proceedings. In one proceeding, the applicant was the plaintiff and the respondents were defendants. In the other, the roles were reversed, with the respondents as plaintiffs and the applicant as defendant. The order for security for costs was made in the latter proceeding, where the applicant was the defendant.

The primary legal issues before the Court of Appeal were whether the applicant had established grounds for leave to appeal, particularly given that no reasons for the original judgment had been provided, and whether it was appropriate for a defendant in one proceeding to obtain security for costs incurred in a separate proceeding in which they were the moving party. The Court also considered the application of rule 42.21(1) of the Uniform Civil Procedure Rules 2005 (NSW) and section 1335(1) of the Corporations Act 2001 (Cth) in this context.

Meagher and Barrett JJA dismissed the summons seeking leave to appeal. Their Honours reasoned that the applicant had failed to demonstrate any error in the original decision or any compelling reason why leave to appeal should be granted. The Court noted that the absence of reasons for the original judgment did not, in itself, preclude an appeal, but the applicant had not advanced sufficient arguments to overcome the high threshold for granting leave. The Court found that the respondents were entitled to security for costs in the proceeding where they were the moving party, and the applicant had not shown that this order was inappropriate or wrongly made.

Consequently, the Court ordered the applicant to pay the respondents' costs of the summons and granted the respondents leave to assess and enforce this costs order forthwith.

Orders

Orders of the court

1. Dismiss Summons seeking leave to appeal.

2. Order applicant to pay respondents' costs.

3. Grant leave to respondents' to assess and enforce costs order forthwith.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

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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