Pure Casting Pty Ltd (as trustee for the Pure Casting Unit Trust) v Long

Pure Casting Pty Ltd (as trustee for the Pure Casting Unit Trust) filed proceedings against Long, a former director, alleging breaches of statutory and fiduciary duties and engaging in a dishonest and fraudulent design to confer a financial benefit on another company, where he was also a director. Long applied for an order for security for costs, seeking to be released from liability to pay Pure Casting's costs if the proceedings were ultimately unsuccessful. The matter was heard in the Supreme Court of Queensland.

The primary legal issue before the court was whether there was a reason to believe Pure Casting would be unable to pay Long's costs if ordered to do so. The court considered the relevant statutory criteria and the evidence provided, including the financial circumstances of both parties. Long argued that Pure Casting, being a trustee, was likely to be judgment proof, as any judgment against it would be paid by the trust fund rather than the trustee itself. The court had to determine if this was a sufficient reason to grant the application.

In dismissing the application, the court held that there was no evidence to support the assertion that Pure Casting would be unable to pay the costs. The court found that Pure Casting was not judgment proof in the context of this application, as it could potentially be held liable for costs if judgment were entered against it. The court also considered that Long had not shown that the claims were vexatious or without merit, which would have been a further consideration in granting the application. As a result, the application for security for costs was dismissed, and Long was ordered to pay Pure Casting's costs of the application.