Swift v McLeary

In *Swift v McLeary*, the appellant sought to appeal a decision, but the respondent applied for security for costs. The dispute centred on the appellant's financial position and whether it warranted an order for security to be provided for the respondent's legal expenses in the appeal. The matter came before Gleeson JA in the Court of Appeal.

The primary legal issue before the Court was whether there were special circumstances justifying an order for security for costs against the appellant, particularly in light of an unexplained dissipation of assets and the appellant's impecuniosity. The Court had to consider the principles governing the exercise of discretion to order security for costs in an appeal context.

Gleeson JA reasoned that the unexplained dissipation of assets by the appellant, coupled with their impecuniosity, constituted special circumstances warranting an order for security for costs. The Court applied the principle that while impecuniosity alone is not sufficient, a demonstrated inability to pay costs, especially when linked to a dissipation of assets, can justify such an order to ensure the respondent is not left without recourse for their costs.

The Court ordered that the appellant provide security for the respondent's costs of the appeal in the sum of $40,000 within 14 days by payment into court. The appeal was stayed until this security was provided. The Court also noted consent regarding the disposition of certain property by the appellant to meet this security requirement and ordered the appellant to pay the respondent's costs of the motion.