Orr v Lusute Pty Ltd

Case [1987] FCA 157


Re: DAVID MURRAY ORR and LUSUTE PTY. LIMITED (Cross-Claimant)
And: LUSUTE PTY. LIMITED AND ORS. and DAVID MURRAY ORR AND ANOR
(Cross-Respondents)
No. G3 of 1984
Practice and Procedure

COURT

IN THE FEDERAL COURT OF AUSTRALIA


NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
Sheppard J.
CATCHWORDS

Practice and Procedure - security for costs - application made on ground of applicant's impecuniosity - applicant within the jurisdiction and at all times impecunious - applicant not suing for the benefit of some other person - Court's general discretion to order security pursuant to its inherent or implied jurisdiction - delay in making application.

Federal Court of Australia Act 1976, s. 56.

Federal Court Rules, Order 28, rule 3(1)(b).

HEARING

SYDNEY

#DATE 10:2:1987

Counsel for the Applicant: Mr. M.P. Sumner-Potts

Solicitors for the Applicant: Palmer Jourdain Noss & Howitt of Auburn by their city agents, P.W. Smyth King & Sons of Sydney

Counsel for the First Respondent: Miss M.J. Beazley

Solicitors for the First Respondent: Michael C. Marney & Co. of Caringbah until 3 February 1987 when ceased to act. The First Respondent then retained R.J. Benjamin & Co. of South Hurstville

Counsel for the Second Respondent: Mr. M.J. Meagher

Solicitors for the Second Respondent: Colin Biggers & Paisley of Sydney

No appearance for the Third Respondent

ORDER

The application that the applicant provide security for the first respondent's costs is dismissed.

The first respondent pay the costs of the application.

(Note: Orders were also made in relation to certain interrogatories and directions given for the future progress of the matter).

NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

JUDGE1

The matters immediately in question are three. They concern an application by the first respondent that the applicant provide security for the first respondent's costs; an application for further and better answers to interrogatories asked of the first respondent by the applicant; and the future management of the case. I deal first with the application for security.

  1. In order that that matter may be dealt with it is necessary to understand something of the proceedings. The action is one in which the applicant sues the respondents on a number of causes of action one of which is within the jurisdiction of this Court because it is founded on s. 52 of the Trade Practices Act 1974. Others are said to be within its accrued jurisdiction. The essential allegations in relation to the cause of action under the Trade Practices Act are to be found in paras. 6 and following of the amended statement of claim. In substance it is alleged that the first respondent, by its servant and agent, a Mr. Levett, and the second respondent, who is an architect, requested the applicant to prepare a quotation for certain building work and, for the purpose thereof, provided to the applicant a set of plans. The applicant in reliance upon the plans prepared a quotation. It is alleged that on 15 January 1982 the applicant…

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Details
AGLC
Orr v Lusute Pty Ltd [1987] FCA 157
Case
[1987] FCA 157
Decision Date

CaseChat Overview and Summary

The case of Orr v Lusute Pty Ltd was heard by the Federal Court. The applicant, Orr, sought to proceed with the case without providing security for the costs of the first respondent, Lusute Pty Ltd. Orr argued that they were impecunious and, as such, should be exempt from the requirement to provide security for costs. Lusute opposed the application, citing the delay in Orr's application for security and arguing that the court should exercise its discretion to order security for costs.

The court considered whether it should exercise its inherent or implied jurisdiction to order security for costs. The court noted that Orr had been within the jurisdiction and impecunious at all times relevant to the proceedings, and that Orr was not suing for the benefit of another person. Despite this, the court found that the delay in making the application for security for costs was a significant factor. The court held that the delay was a relevant consideration in the exercise of the court's discretion to order security for costs. Given the delay, the court concluded that it was not appropriate to exercise its discretion to order security for costs in Orr's favour.

The court dismissed the application that Orr provide security for Lusute's costs. The court ordered Lusute to pay the costs of the application. The court also made orders in relation to certain interrogatories and provided directions for the future progress of the matter.

Orders

Orders of the court

The application that the applicant provide security for the first respondent's costs is dismissed.

The first respondent pay the costs of the application.

(Note: Orders were also made in relation to certain interrogatories and directions given for the future progress of the matter).

NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

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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