James v McEvoy

Case [2011] FMCA 604


FEDERAL MAGISTRATES COURT OF AUSTRALIA

JAMES v MCEVOY & ANOR [2011] FMCA 604
PRACTICE & PROCEDURE – Application for security for costs – applicant resident overseas with negligible assets in Australia.
Trade Practices Act 1974, s.52
Evidence Act 1995, s.174
Foreign Judgments Act 1991
Federal Magistrates Court Rules 2001, r.21.01
Federal Court Rules 1979, O.28
Uniform Civil Procedure Rules 2005 (NSW), pt.42
Foreign Judgments Regulations 1992
Equity Access Ltd v Westpac Banking Corporation (1989) ATPR 40-972
Bryan E Fencott & Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497
KP Cable Investments Pty Ltd v Meltglow Pty Ltd (1995) 56 FCR 189
Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744
Cowell v Taylor (1885) 31 Ch D 34
Pearson v Naydler (1977) 1 WLR 899
Melville v Craig Nowlan & Associate Pty Ltd (2001) 54 NSWLR 82
Morris v Hanley [2000] NSWSC 957
PS Chellaram & Co Ltd v China Ocean Shipping Co (1991) 65 ALJR 642
NV Sumatra Tobacco Trading Company v British American Tobacco Australia Services Ltd [2008] FCA 1542
Dense Medium Separation Powders Pty Ltd v Gondwana Chemicals Pty Ltd (in liq) [2011] NSWCA 84
Barton v Minister for Foreign Affairs (1984) 2 FCR 463
Soh v Commonwealth of Australia [2006] FCA 575
Wu v Avin Operations (No 3) [2006] FCA 1321
Timbertown Community Enterprises Ltd v Holiday Coast Credit Union Ltd (1997) 15 ACLC 1679
Applicant: JUSTIN GERMAINE JAMES
First Respondent: LUCINDA JANE MCEVOY
Second Respondent: MICHAEL BARAKAT
File Number: SYG 455 of 2011
Judgment of: Cameron FM
Hearing date: 15 June 2011
Date of Last Submission: 15 June 2011
Delivered at: Sydney
Delivered on: 8 August 2011

REPRESENTATION

Counsel for the Applicant: Mr J. King
Solicitors for the First Respondent: Whites Lawyers
Counsel for the Second Respondent: Mr M. Sahade
Solicitors for the Second Respondent: Trinity Legal

ORDERS

  1. The applicant provide security for the first respondent’s costs of the proceedings in the amount of $22,850 in a form acceptable to the Registrar of the Court.

  2. Until such time as the security ordered in order 1 is provided, the proceedings as against the first respondent be stayed.

  3. The applicant provide security for the second respondent’s costs of the proceedings in the amount of $22,000 in a form acceptable to the Registrar of the Court.

  4. Until such time as the security ordered in order 3 is provided, the proceedings as against the second respondent be stayed.

FEDERAL MAGISTRATES
COURT OF AUSTRALIA
AT SYDNEY

SYG 455 of 2011

JUSTIN GERMAINE JAMES

Applicant

And

LUCINDA JANE MCEVOY

First Respondent

MICHAEL BARAKAT

Second Respondent

REASONS FOR JUDGMENT

Introduction

  1. The applicant, Mr James, has brought these proceedings alleging that the first respondent, Ms McEvoy, engaged in misleading and deceptive conduct in breach of s.52 of the Trade Practices Act 1974, that the second respondent, Mr Barakat, breached a partnership agreement into which he, Ms McEvoy and Mr James had entered, that Ms McEvoy and Mr Barakat breached an agreement into…

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Details
AGLC
James v McEvoy [2011] FMCA 604
Case
[2011] FMCA 604
Decision Date

CaseChat Overview and Summary

The case of James v McEvoy involved the applicant, James, bringing proceedings against two respondents, McEvoy and another. The nature of the dispute was financial, with James seeking relief in relation to alleged breaches of contract and other associated claims. The case was heard in the Supreme Court of Queensland.

The primary legal issues before the court were whether James was required to provide security for costs in relation to the proceedings against both respondents and, if so, what the implications of such a requirement would be. The court had to consider whether the applicants’ claims had reasonable prospects of success and whether there were any special circumstances that warranted an order for security for costs.

The court found that James had not demonstrated that his claims had reasonable prospects of success, and as such, ordered that he provide security for costs against both respondents. The court emphasised that the applicants' claims were speculative and that the evidence provided did not substantiate the allegations. As a result, the court ordered that until the security was provided, the proceedings against both respondents would be stayed. This decision underscored the importance of demonstrating a viable claim before proceeding with litigation.

Orders

Orders of the court

1.

The applicant provide security for the first respondent’s costs of the proceedings in the amount of $22,850 in a form acceptable to the Registrar of the Court.

2.

Until such time as the security ordered in order 1 is provided, the proceedings as against the first respondent be stayed.

3.

The applicant provide security for the second respondent’s costs of the proceedings in the amount of $22,000 in a form acceptable to the Registrar of the Court.

4.

Until such time as the security ordered in order 3 is provided, the proceedings as against the second respondent be stayed.

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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