Jaydan Pty Ltd v You Move Me Group Pty Ltd - [2024] NSWDC 278

District Court

New South Wales

Amendment notes

Medium Neutral Citation: Jaydan Pty Ltd v You Move Me Group Pty Ltd [2024] NSWDC 278
Hearing dates: 1 March, 19 April, 10 May and 28 June 2024
Date of orders: 11 July 2024
Decision date: 11 July 2024
Jurisdiction: Civil
Before: Cole DCJ
Decision:
(1) Within 28 days of the date of this order, the plaintiff is to provide security for the defendants’ costs pursuant to rule 42.21 of the Uniform Civil Procedure Rules 2005 (NSW) (‘UCPR’) and section 1335(1) of the Corporations Act 2001 (Cth) by paying into Court the sum of $73,000.
(2) The proceedings are stayed in accordance with rule 42.21 UCPR and s 67 of the Civil Procedure Act 2005 (NSW) until the plaintiff provides security in accordance with order (1).
(3)   In the event that security for costs in accordance with order (1) is not provided within 28 days, the statement of claim will be dismissed.
(4)   The defendants have liberty to apply for additional security for costs at any stage of these proceedings.
(5)   The application filed on 15 December 2023 by the plaintiff/cross-defendant for security for costs from the first defendant/cross-claimant is dismissed.
(6)   The application filed on 15 August 2023 by the plaintiff for the placement of the matter in the “not ready list” pending further orders is refused.

Catchwords:
COSTS — Security for costs — Legal nature of the plaintiff — Plaintiff is a company – Plaintiff seeks stay of indefinite duration

Legislation Cited:
Civil Procedure Act 2005 (NSW), s 67
Corporations Act 2001 (Cth), ss 601AH(5), 1335(1)
Uniform Civil Procedure Rules 2005 (NSW), r 42.21

Cases Cited:
Galati v Deans [2018] NSWSC 1600
Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744
Odyssey Financial Management Pty Ltd v QBE Insurance (Australia) Ltd [2012] NSWCA 113
Treloar Constructions Pty Ltd v McMillan [2016] NSWCA 302
Ward v Westpac Banking Corporation Ltd [2023] NSWCA 11

Category: Procedural rulings
Parties: Jaydan Pty Ltd (Plaintiff)
You Move Me Group Pty Ltd (First Defendant/Cross-Claimant)
Doron Goldbarsht (Second Defendant)
Idan Eliyahu (Cross-Defendant)
Representation:
Solicitors:

Mr LAH Macinnes (Plaintiff)
StevensVuaran Lawyers
Mr J Levy (Defendants)
Business First Legal Services

File Number(s): 2022/00374753
Publication restriction: Nil

JUDGMENT

This judgment concerns an application on behalf of the first defendant and cross-claimant, You Move Me Group Pty Ltd (‘the first defendant’) and the second defendant, Dr Doran Goldbarsht (‘the second defendant’), for security for costs and associated orders. It also concerns an application by the plaintiff and cross-defendant, Jaydan Pty Ltd (“the plaintiff”) for the placement of the matter in the “not ready” list and associated orders.
The plaintiff has also sought an order for security for costs against the first defendant in relation to the cross-claim. Dr Doron Goldbarsht, who is a legal practitioner and a director of the first defendant, has now provided an undertaking to pay the legal costs of the first defendant up to the sum of $70,334, in the event of any costs order being…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2024] NSWDC 278
Decision Date: 11 July 2024

CaseChat Overview and Summary

In the matter of Jaydan Pty Ltd versus You Move Me Group Pty Ltd, the parties were engaged in a legal dispute concerning the enforcement of security for costs in a commercial litigation context. The case was heard in the Supreme Court of New South Wales. The plaintiff, a company, sought to stay the proceedings indefinitely and to secure costs from the defendants, another company, under the Uniform Civil Procedure Rules and the Corporations Act. The defendants contested the plaintiff's application on several grounds, including the adequacy of the security amount and the plaintiff's legal standing.

The court was required to determine the appropriate legal standard for security for costs, the sufficiency of the amount proposed by the plaintiff, and the implications of the plaintiff's status as a company on its ability to seek an indefinite stay of the proceedings. The court also needed to assess the reasonableness of the plaintiff's request to place the matter in the “not ready list” pending further orders.

The court held that the plaintiff was obligated to provide security for the defendants' costs as per the rules and statutory provisions. It was established that the plaintiff, being a company, could not seek an indefinite stay of the proceedings without providing adequate security. The court found the proposed security amount to be reasonable and ordered the plaintiff to provide $73,000 within 28 days. The court refused the plaintiff's application for an indefinite stay and dismissed its application for security for costs from the first defendant. Additionally, the application to place the matter in the “not ready list” was refused. The proceedings were consequently stayed until the plaintiff complied with the security order, with the possibility of dismissal if the security was not provided within the specified time frame.

The court's final orders mandated that the plaintiff provide security for the defendants' costs, stay the proceedings until such security was provided, and dismiss the plaintiff's related applications. The court granted the defendants the liberty to apply for additional security at any stage of the proceedings.

Orders

Orders of the court

(1) Within 28 days of the date of this order, the plaintiff is to provide security for the defendants’ costs pursuant to rule 42.21 of the Uniform Civil Procedure Rules 2005 (NSW) (‘UCPR’) and section 1335(1) of the Corporations Act 2001 (Cth) by paying into Court the sum of $73,000.

(2) The proceedings are stayed in accordance with rule 42.21 UCPR and s 67 of the Civil Procedure Act 2005 (NSW) until the plaintiff provides security in accordance with order (1).

(3) In the event that security for costs in accordance with order (1) is not provided within 28 days, the statement of claim will be dismissed.

(4) The defendants have liberty to apply for additional security for costs at any stage of these proceedings.

(5) The application filed on 15 December 2023 by the plaintiff/cross-defendant for security for costs from the first defendant/cross-claimant is dismissed.

(6) The application filed on 15 August 2023 by the plaintiff for the placement of the matter in the “not ready list” pending further orders is refused.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.

Medium Neutral Citation:	Jaydan Pty Ltd v You Move Me Group Pty Ltd [2024] NSWDC 278
Hearing dates:	1 March, 19 April, 10 May and 28 June 2024
Date of orders:	11 July 2024
Decision date:	11 July 2024
Jurisdiction:	Civil
Before:	Cole DCJ
Decision:	(1) Within 28 days of the date of this order, the plaintiff is to provide security for the defendants’ costs pursuant to rule 42.21 of the Uniform Civil Procedure Rules 2005 (NSW) (‘UCPR’) and section 1335(1) of the Corporations Act 2001 (Cth) by paying into Court the sum of $73,000. (2) The proceedings are stayed in accordance with rule 42.21 UCPR and s 67 of the Civil Procedure Act 2005 (NSW) until the plaintiff provides security in accordance with order (1). (3) In the event that security for costs in accordance with order (1) is not provided within 28 days, the statement of claim will be dismissed. (4) The defendants have liberty to apply for additional security for costs at any stage of these proceedings. (5) The application filed on 15 December 2023 by the plaintiff/cross-defendant for security for costs from the first defendant/cross-claimant is dismissed. (6) The application filed on 15 August 2023 by the plaintiff for the placement of the matter in the “not ready list” pending further orders is refused.
Catchwords:	COSTS — Security for costs — Legal nature of the plaintiff — Plaintiff is a company – Plaintiff seeks stay of indefinite duration
Legislation Cited:	Civil Procedure Act 2005 (NSW), s 67 Corporations Act 2001 (Cth), ss 601AH(5), 1335(1) Uniform Civil Procedure Rules 2005 (NSW), r 42.21
Cases Cited:	Galati v Deans [2018] NSWSC 1600 Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744 Odyssey Financial Management Pty Ltd v QBE Insurance (Australia) Ltd [2012] NSWCA 113 Treloar Constructions Pty Ltd v McMillan [2016] NSWCA 302 Ward v Westpac Banking Corporation Ltd [2023] NSWCA 11
Category:	Procedural rulings
Parties:	Jaydan Pty Ltd (Plaintiff) You Move Me Group Pty Ltd (First Defendant/Cross-Claimant) Doron Goldbarsht (Second Defendant) Idan Eliyahu (Cross-Defendant)
Representation:	Solicitors: Mr LAH Macinnes (Plaintiff) StevensVuaran Lawyers Mr J Levy (Defendants) Business First Legal Services
File Number(s):	2022/00374753
Publication restriction:	Nil