Re Chambeyron Pty Ltd (No 2)

Re Chambeyron Pty Ltd (No 2) involved a dispute where the plaintiff sought to have costs awarded against non-parties. The case was heard in the Supreme Court of Victoria. The central issue was whether the court had the jurisdiction to award costs against non-parties, specifically considering whether the plaintiff corporation was used as a front for individuals behind the litigation, and if the benefit to non-parties was sufficient to justify an award of costs against them. Additionally, the case examined whether it was in the interests of justice to order non-parties to pay costs.

The court addressed the jurisdictional issues by considering the provisions of section 24 of the Supreme Court Act 1986 (Vic), which grants the court discretion to award costs against non-parties. The court also evaluated the applicability of rule 63.23 of the Supreme Court (General Civil Procedure) Rules 2015 (Vic) and section 29 of the Civil Procedure Act 2010 (Vic) in determining whether solicitors should be liable for costs. Furthermore, the court explored whether litigants in person and their litigation guardians could claim certain expenses under the definition of 'costs' in section 24 of the Supreme Court Act 1986 (Vic). The court also considered the availability of a security of costs order against a corporation under section 1335 of the Corporations Act 2001 (Cth).

In its decision, the court held that it had the jurisdiction to award costs against non-parties where the plaintiff corporation was used as a front for individuals behind the litigation and where it was in the interests of justice to do so. The court exercised its discretion under section 24 of the Supreme Court Act 1986 (Vic) and found that the benefit to non-parties was sufficient to justify an award of costs against them. The court also determined that the solicitors were not liable for costs as per rule 63.23 of the Supreme Court (General Civil Procedure) Rules 2015 (Vic) and section 29 of the Civil Procedure Act 2010 (Vic). Finally, the court clarified that litigants in person and their litigation guardians could claim certain expenses under the definition of 'costs'. The court also noted that a security of costs order against a corporation may be available under section 1335 of the Corporations Act 2001 (Cth). The court ordered that the non-parties pay the plaintiff’s costs in accordance with the findings.