Searle Pty Ltd and Pencious And Ors

This matter concerned applications for costs and security for costs made by an intervener, Searle Pty Ltd, against the Husband in proceedings before Benjamin J. The dispute involved the Husband's liability for the Intervener's costs of the proceedings and a separate costs application, as well as the provision of security for those costs.

The primary legal issues before the court were whether the Husband should be ordered to pay the Intervener's costs on an indemnity basis, whether the Husband should pay the Intervener's costs of the costs application, and whether security for costs should be ordered. The court was also required to consider an application for security for costs of an appeal, which was referred to the Appeal Division.

His Honour ordered that the Husband pay the Intervener's costs of both the proceedings and the costs application on a party/party basis. In relation to security for costs, the court ordered that the Wife pay $100,000 to the solicitors for the Husband and the Intervener, to be held in a trust account as security for the costs order. This sum, along with accumulated interest, was to be applied towards the payment of the costs order, with any balance to be paid to the Husband once the quantum of costs was determined. Leave was granted for the parties to apply in relation to this order within one year. The court also certified that it was reasonable to engage counsel and referred the application for security for the appeal to the Appeal Division.