Khattar v Khattar; Fayad v Khatter

In *Khattar v Khattar; Fayad v Khatter*, the New South Wales Court of Appeal considered an application for security for costs. The respondents sought an order requiring the appellant to provide security for their costs of the appeal, arguing that there were special circumstances justifying such an order.

The primary legal issue before the Court was whether the grounds of appeal were reasonably arguable, whether the appellant was impecunious, and whether attempts to enforce judgments had been frustrated by the appellant, thereby creating a substantial risk that the respondents would not recover their costs if successful. This involved an assessment of the appellant's financial position and the prospects of the appeal.

The Court, applying rule 51.50 of the *Uniform Civil Procedure Rules 2005 (NSW)*, found that the circumstances warranted an order for security for costs. Gleeson JA determined that the appellant's impecuniosity, coupled with the respondents' inability to recover costs if the appeal failed, constituted special circumstances.

Consequently, the Court ordered the appellant to provide security for the respondents' costs of the appeal in the sum of $35,405 within 14 days by payment into court. The appeal was stayed until compliance with this order, and the appellant was ordered to pay the respondents' costs of the motion. Liberty to apply was granted concerning alternative methods of providing security.