Reddy v C&P Syndicate Pty Ltd

Case [2013] NSWCA 425


Court of Appeal

New South Wales

Case Title: Reddy v C&P Syndicate Pty Ltd
Medium Neutral Citation: [2013] NSWCA 425
Hearing Date(s): 2 December 2013
Decision Date: 11 December 2013
Before: Gleeson JA
Decision:

The first respondent's notice of motion filed 26 November 2013 is dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: PROCEDURE - costs - security for costs - impecuniosity - where it is submitted that there has been a dissipation of assets - where it is submitted that the appeal has limited prospects of success - whether special circumstances shown
Legislation Cited: Uniform Civil Procedure Rules 2005, rr 42.21, 51.50
Cases Cited: J M Properties Pty Ltd v Strata Corporation No 13975 Inc [2006] SASC 227
Porter v Gordian Runoff Ltd [2004] NSWCA 171
Preston v Harbour Pacific Underwriting Management Pty Ltd [2007] NSWCA 247
P S Chellaram & Co Ltd v China Ocean Shipping [1991] HCA 36; 102 ALR 321
Shannon v Australia and New Zealand Banking Group Ltd (No 2) [1994] 2 Qd R 563
Swift v McLeary [2013] NSWCA 173
Transglobal Capital Pty Ltd v Yolarno Pty Ltd [2004] NSWCA 136; 60 NSWLR 143
Category: Interlocutory applications
Parties: Jeanette Dawn Reddy (Appellant)
C & P Syndicate (First Respondent)
Teddington Pty Ltd ABN 12 136 980 124 T/as Teddington Legal (Second Respondent)
Representation
- Counsel: Counsel:
M R Lawson (Appellant)
K Rees SC with J Simpkins (First Respondent)
T Faulkner (Second Respondent)
- Solicitors: Solicitors:
Atkinson Vinden (Appellant)
Newhouse & Arnold (First Respondent)
Gilchrist Connell (Second Respondent)
File Number(s): 2013/223386
Decision Under Appeal
- Before: Lindsay J
- Date of Decision:  27 May 2013
- Citation: [2013] NSWSC 643
- Court File Number(s): 2011/232981

JUDGMENT

  1. GLEESON JA: This is an application by the first respondent, C&P Syndicate Pty Ltd (C&P), that the appellant, Mrs Reddy, provide security for costs of the appeal which was filed on 24 June 2013. The amount of security sought in the notice of motion was $24,200 in respect of the first respondent's costs and $35,000 in respect of the second respondent's costs.

  2. C&P sought security in respect of the second respondent's costs of the appeal on the basis that C&P has filed a notice of cross-appeal against the second respondent (Teddington Legal), and if Mrs Reddy's appeal failed, C&P would seek an order that Mrs Reddy pay to C&P the costs which C&P would be liable to pay in respect of the cross-appeal.

  3. The essential issue is whether the respondent has shown "special circumstances" which enliven the discretion to order security for costs under Uniform Civil Procedure Rules 2005…

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Reddy v C&P Syndicate Pty Ltd [2013] NSWCA 425
Case
[2013] NSWCA 425
Decision Date

CaseChat Overview and Summary

In *Reddy v C&P Syndicate Pty Ltd*, the appellant, Reddy, sought to appeal a decision of the primary court. The first respondent, C&P Syndicate Pty Ltd, filed a notice of motion seeking security for costs of the appeal. The core of the dispute revolved around whether Reddy had demonstrated sufficient grounds to avoid an order for security for costs, with C&P Syndicate arguing that Reddy was impecunious, had dissipated assets, and that the appeal had limited prospects of success. The matter was heard in the Court of Appeal of New South Wales before Gleeson JA.

The primary legal issue before the Court of Appeal was whether special circumstances existed to justify refusing C&P Syndicate's application for security for costs. This required the court to consider the appellant's financial position, including allegations of asset dissipation, and the apparent merits of the proposed appeal. The court had to weigh the respondents' right to security against the appellant's right to pursue an appeal.

Gleeson JA dismissed the first respondent's notice of motion. While the court acknowledged the respondents' submissions regarding impecuniosity and the prospects of the appeal, it was not satisfied that these factors, in the circumstances presented, constituted special circumstances warranting an order for security for costs. The court ultimately found against the application for security.

Orders

Orders of the court

The first respondent's notice of motion filed 26 November 2013 is dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

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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