Michael Wilson and Partners Ltd v Nicholls (No 3)

The Supreme Court of the Australian Capital Territory was considering an application for security for costs brought by the sixth respondent against the appellant, Michael Wilson & Partners Ltd. The application had been adjourned multiple times due to ongoing proceedings in other jurisdictions, including the United Kingdom and New South Wales, which were relevant to the appellant's ability to meet potential cost orders. The amount sought was $22,000.

The primary legal issue before the court was whether to grant a further adjournment of the security for costs application, as requested by the appellant, or to proceed to a hearing. The appellant argued that a hearing in the United Kingdom concerning the lifting of a restraining order, which affected funds potentially available to satisfy a costs order, was scheduled for May 2022 and that a decision from that hearing was necessary before the security for costs application could be properly determined.

The court reasoned that the appellant's arguments for an adjournment were essentially points that could be raised in defence of the security for costs application itself. Having considered the history of repeated adjournments, the court concluded that sufficient time had elapsed and that the matter should now be set down for hearing. The court noted that the appellant had achieved some successes in related proceedings in other jurisdictions, but that a freezing order in the UK remained in place.

Consequently, the court ordered that the application for security for costs be listed for a one-day hearing on 2 May 2022. Directions were also given for the parties to file and serve further affidavit material and submissions by specific dates in March and April 2022.