Marks-Isaacs v Fowler & Ors

Case [2005] NSWCA 37


CITATION:

Marks-Isaacs v Fowler & Ors [2005] NSWCA 37

HEARING DATE(S):

31 January 2005

 
JUDGMENT DATE: 


2 March 2005

JUDGMENT OF:

Handley JA

DECISION:

1. Order the appellant to provide security for one set of costs between the respondents in the amount of $15,000 to be deposited in a joint interest bearing account with a bank or building society in the names of the solicitor for the appellant and a solicitor for the respondents as agreed between them or as nominated by the Registrar, with liberty to provide such security by monthly deposits of not less than $1,000, the first such deposit to be made on or before 31 March 2005.; 2. The appellant is to be at liberty to prosecute the appeal in the meantime subject to such payments being made but a hearing date for the appeal is not to be fixed until the full $15,000 has been deposited.; 3. Costs of both motions costs in the appeal.; 4. Liberty to apply.

CATCHWORDS:

APPEAL - security for costs - special circumstances - appellant's financial position not fully disclosed - security ordered - one set of costs between respondents

LEGISLATION CITED:

Supreme Court Rules 1970 Pt 51 r 16(1)

CASES CITED:

Insurance Commissioner v Joyce (1948) 77 CLR 39
Permanent Trustee Co of NSW Ltd v Hinks (1934) 34 SR (NSW) 130
Porter v Gordian Runoff Ltd [2004] NSWCA 171
Transglobal Capital Pty Ltd v Yolarno Pty Ltd (2004) 60 NSWLR 143

PARTIES:

Simon Edwards Marks-Isaacs (Appellant)
Stuart Grant Fowler & Ors trading as Gadens Ridgeway (First Respondent)
James Robert Dupree (Second Respondent)

FILE NUMBER(S):

CA 41014/04

COUNSEL:

R F Margo SC/A Blank (Appellant)
D Cassperson (First Respondent)
G Craddock (Second Respondent)

SOLICITORS:

K M Harkness & Co (Appellant)
Dibbs Barker Gosling (First Respondent)
McCabe Terrill (Second Respondent)

LOWER COURT JURISDICTION:

District Court

LOWER COURT FILE NUMBER(S):

DC 9648/00

LOWER COURT JUDICIAL OFFICER:

Phegan DCJ



                          CA 41014/04

                          HANDLEY JA

                          2 MARCH 2005
SIMON EDWARDS MARKS-ISAACS v STUART GRANT FOWLER & ORS
CATCHWORDS

APPEAL – security for costs – special circumstances – appellant’s financial position not fully disclosed – security ordered – one set of costs between respondents

FACTS

The appellant sued the respondents in the District Court for professional negligence in acting for him in property settlement proceedings in the Family Court. His claim was dismissed and he appealed as of right. The respondents filed notices of motion seeking orders for security for costs.

The respondents’ costs of the trial were estimated at $365,000, and their costs of the appeal at $30,000 each. The evidence of the appellant’s financial position, given by his solicitor on information and belief, showed that he had no capital assets but had a substantial income.

SCR Pt 51 r 16(1) provides that “the Court of Appeal may, in special circumstances, order that such security as the Court of Appeal thinks fit be given for the costs of the appeal”. The evidence of the appellant’s financial position was incomplete and the Court inferred that his…

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AGLC
Marks-Isaacs v Fowler & Ors [2005] NSWCA 37
Case
[2005] NSWCA 37
Decision Date

CaseChat Overview and Summary

The appeal concerned an application for security for costs brought by the respondents against the appellant. The primary dispute revolved around the appellant's financial position and whether it warranted an order for security to be provided for the respondents' costs. The matter was heard in the Court of Appeal of New South Wales.

The central legal issue before the court was whether special circumstances existed to justify ordering the appellant to provide security for costs. This involved a determination of whether the appellant's financial position, as presented to the court, was sufficiently uncertain or precarious to warrant such an order, and whether the respondents had demonstrated a need for security to ensure their costs were covered.

Handley JA found that the appellant's financial position had not been fully disclosed, and that this lack of transparency, coupled with the potential for the appellant to be unable to meet the respondents' costs, constituted special circumstances justifying an order for security. The court applied the principles governing applications for security for costs, considering the appellant's ability to pay and the overall justice of the case.

The court ordered the appellant to provide security for one set of costs between the respondents in the amount of $15,000. This security was to be deposited in a joint interest-bearing account, with liberty to provide it through monthly instalments of not less than $1,000. The appellant was permitted to prosecute the appeal in the meantime, subject to these payments, but a hearing date would not be fixed until the full amount was deposited. The costs of the motions were to be costs in the appeal.

Orders

Orders of the court

1. Order the appellant to provide security for one set of costs between the respondents in the amount of $15,000 to be deposited in a joint interest bearing account with a bank or building society in the names of the solicitor for the appellant and a solicitor for the respondents as agreed between them or as nominated by the Registrar, with liberty to provide such security by monthly deposits of not less than $1,000, the first such deposit to be made on or before 31 March 2005.; 2. The appellant is to be at liberty to prosecute the appeal in the meantime subject to such payments being made but a hearing date for the appeal is not to be fixed until the full $15,000 has been deposited.; 3. Costs of both motions costs in the appeal.; 4. Liberty to apply.

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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