Islander Enterprises Pty Ltd v Commonwealth of Australia

Islander Enterprises Pty Ltd (the appellant) appealed a Master's decision to grant an application for security for costs made by the Commonwealth of Australia (the respondent). The appeal was heard by the Full Court of the Supreme Court of South Australia.

The primary legal issues before the Full Court were whether the appeal judge erred in refusing leave to appeal the Master's decision, and whether the Master had properly exercised her discretion in ordering security for costs. This involved considering whether the appeal judge correctly applied the principles from *House v The King* when assessing the Master's discretionary decision, and whether the Master had taken all material considerations into account, including issues of delay, impecuniosity, potential stultification of the action, public interest, and previous costs orders.

The Full Court considered the appeal judge's reasoning, which affirmed the Master's findings. The appeal judge had declined to admit fresh evidence regarding impecuniosity, finding it should have been produced before the Master. The appeal judge found no error in the Master's assessment of delay, impecuniosity, the potential stultification of the action, the public interest, or the consideration of prior costs orders. Consequently, the appeal judge concluded that the Master had not acted on a wrong principle, been guided by irrelevant facts, mistaken the facts, or failed to consider material considerations, and that the order for security for costs was not manifestly unreasonable or unjust.

The Full Court dismissed the appeal, upholding the appeal judge's decision to refuse leave to appeal the Master's order for security for costs.