McCardle v Johnson

Case [2023] FCA 1369


FEDERAL COURT OF AUSTRALIA

McCardle v Johnson [2023] FCA 1369  

Appeal from:

McCardle v Johnson [2021] FCA 1528

McCardle v Johnson (No 2) [2022] FCA 168

McCardle v Johnson (No 3) [2023] FCA 790

File number: QUD 343 of 2023
Judgment of: STEWART J
Date of judgment: 2 November 2023
Catchwords: PRACTICE AND PROCEDURE ­– application for security for costs pending the determination of application for leave to appeal and for extensions of time – whether the likelihood of an order for security for costs stifling a claim weighs against making such an order where the claim is sought to be pursued in an appeal and in respect of which there has thus already been a proceeding
Legislation: Federal Court of Australia Act 1976 (Cth), s 56
Cases cited:

Clack v Collins [2010] FCA 513

McCardle v Johnson (No 2) [2022] FCA 168

McCardle v Johnson (No 3) [2023] FCA 790

McCardle v Johnson [2021] FCA 1528

Soh v Commonwealth of Australia [2008] FCA 1524

Tait v Bindal People [2002] FCA 322

Cowell v Taylor (1885) 31 Ch D 34

Division: General Division
Registry: Queensland
National Practice Area: Commercial and Corporations
Sub-area: General and Personal Insolvency
Number of paragraphs: 24
Date of hearing: 2 November 2023
Solicitor for the Applicant: The Applicant appeared in person.
Counsel for the First Respondent: S Russell
Solicitor for the First Respondent: Wallmans Lawyers
Solicitor for the Second Respondent: Australian Government Solicitor

ORDERS

QUD 343 of 2023
BETWEEN:

ROXANNE MARIE MCCARDLE

Applicant

AND:

GREGG ROBERTSON JOHNSON

First Respondent

INSPECTOR-GENERAL IN BANKRUPTCY

Second Respondent

ORDER MADE BY:

STEWART J

DATE OF ORDER:

2 NOVEMBER 2023

THE COURT ORDERS THAT:

1.Pursuant to s 56 of the Federal Court of Australia Act1976 (Cth) the applicant provide security in the sum of $10,000 inclusive of GST for the first respondent’s costs of the application for leave to appeal and for extensions of time by payment into Court or in such other form as may be acceptable to the first respondent or, failing that, acceptable to a Registrar of the Court.

2.Such security be provided by 4 December 2023.

3.The proceeding be dismissed in the event of the applicant’s default in providing security as ordered.

4.The costs be costs in the cause of the application for leave to appeal and for extensions of time.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT
(Delivered ex tempore, revised from the transcript)

STEWART J:

  1. The principal proceeding before me was commenced by a notice of appeal, although the applicant, who was wrongly referred to in that notice as the appellant, accepts that the orders against which she seeks to appeal are interlocutory orders, and for that reason she requires leave to appeal. The applicant also accepts that in respect of at least some of the many orders identified in that notice of appeal, she requires an extension of time. Indeed, the document headed “notice of appeal”, as she points…

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Details
AGLC
McCardle v Johnson [2023] FCA 1369
Case
[2023] FCA 1369
Decision Date

CaseChat Overview and Summary

The applicant, McCardle, sought security for costs in an application before the Federal Court of Australia. The respondent, Johnson, opposed this application which was in relation to an appeal and extensions of time. The central issue before the court was whether the likelihood of an order for security for costs stifling a claim weighed against making such an order in the context of an appeal. This consideration was particularly pertinent given that the claim had already undergone a proceeding.

The court found that the likelihood of an order for security for costs stifling a claim was a significant factor to consider. However, the court also recognised the importance of ensuring that parties do not abuse the legal process by bringing frivolous claims. In balancing these considerations, the court held that the applicant should provide security for costs. The court determined that the applicant must provide $10,000 inclusive of GST by a specified date. Failure to comply with this order would result in the dismissal of the proceeding. The court also specified that the costs would be costs in the cause of the application for leave to appeal and for extensions of time.

The court's decision was guided by the need to balance the protection of parties from frivolous claims with the potential stifling effect of security for costs orders. The court concluded that the applicant should provide the required security for costs and set out the consequences of non-compliance. The court's ruling ensured that the legal process was not abused while also acknowledging the potential impact on the applicant's ability to pursue the claim.

Orders

Orders of the court

1. Pursuant to s 56 of the Federal Court of Australia Act 1976 (Cth) the applicant provide security in the sum of $10,000 inclusive of GST for the first respondent’s costs of the application for leave to appeal and for extensions of time by payment into Court or in such other form as may be acceptable to the first respondent or, failing that, acceptable to a Registrar of the Court.

2. Such security be provided by 4 December 2023.

3. The proceeding be dismissed in the event of the applicant’s default in providing security as ordered.

4. The costs be costs in the cause of the application for leave to appeal and for extensions of time.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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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