Salmon v Albarran (No 2)

In *Salmon v Albarran (No 2)*, Stern JA considered an application by the respondents for security for costs of an appeal. The appellants sought to appeal a decision from the first instance proceedings. The respondents argued that special circumstances existed warranting an order for security, citing their significant incurred costs in the initial proceedings and the unlikelihood of recovering those costs on appeal due to the appellants' impecuniosity and lack of candour.

The central legal issue before the court was whether to order the appellants to provide security for the respondents' costs of the appeal, and if so, in what amount. This required the court to assess whether the circumstances of the case met the threshold for ordering security, particularly in light of the respondents' financial concerns regarding potential cost recovery and the appellants' conduct.

Stern JA applied the principles governing applications for security for costs, considering the relevant Uniform Civil Procedure Rules (NSW). The court found that special circumstances were established, justifying the imposition of security. This conclusion was based on the evidence presented regarding the appellants' impecuniosity and a perceived lack of candour, which together created a real risk that the respondents would be unable to recover their costs of the appeal if the appellants were unsuccessful.

The court ordered the appellants to provide security for the first, second, and fourth to eighth respondents' costs of the appeal in the sum of $35,000, and for the third respondent's costs in the sum of $15,000, by a specified date. The proceedings were stayed until security was provided. The respondents' applications to dismiss the appeals for failure to provide security were adjourned, with directions for a further hearing if security was not furnished. The appellants were ordered to pay the respondents' costs of the security for costs motion.