Procorp Civil Pty Ltd v Napoli Excavations and Contracting Pty Ltd (No 2)

Procorp Civil Pty Ltd sought security for costs against Napoli Excavations and Contracting Pty Ltd in proceedings concerning an adjudication determination made under the *Building and Construction Industry Security of Payment Act 1999* (NSW). The primary dispute revolved around whether Procorp, as the party challenging the adjudication determination, should be required to provide security for Napoli's costs.

The central legal issue before the court was whether Procorp, in challenging the adjudication determination, should be treated as a plaintiff for the purposes of an application for security for costs. This involved considering whether the usual principles for ordering security for costs against a plaintiff applied, or if special circumstances were required to be demonstrated. The court also had to determine if any such special circumstances were present in this matter.

Hodgson JA reasoned that in the context of an application for security for costs, a party challenging an adjudication determination under the *Security of Payment Act* is in a position analogous to a plaintiff. This is because such a party is seeking to set aside or vary the determination, effectively initiating a process to overturn a decision that is otherwise binding. Consequently, the court held that the usual principles for ordering security for costs against a plaintiff apply, and it is not necessary to demonstrate "special circumstances" beyond the ordinary grounds for such an order. The court found that Procorp, as the party seeking to resist the enforcement of the adjudication determination, was in a position where security for costs could be ordered.

The court ordered that Procorp Civil Pty Ltd provide security for the costs of Napoli Excavations and Contracting Pty Ltd in the sum of $30,000.