WA Glass Pty Ltd v Auto Control Systems Pty Ltd

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JURISDICTION     :   DISTRICT COURT OF WESTERN AUSTRALIA

IN CIVIL

LOCATION:   PERTH

CITATION:   WA GLASS PTY LTD -v- AUTO CONTROL SYSTEMS PTY LTD [2024] WADC 108

CORAM:   GETHING DCJ

HEARD:   5 DECEMBER 2024

DELIVERED          :   13 DECEMBER 2024

FILE NO/S:   CIV 614 of 2024

BETWEEN:   WA GLASS PTY LTD

Plaintiff

AND

AUTO CONTROL SYSTEMS PTY LTD

Defendant


Catchwords:

Practice and procedure - Security for costs - Turns on own facts

Legislation:

Corporations Act 2001 (Cth) s 1335

Result:

Application dismissed

Representation:

Counsel:

Plaintiff : Mr D H Solomon
Defendant : Mr J P Cook

Solicitors:

Plaintiff : Solomon Brothers
Defendant : Mendelawitz Morton Commercial Lawyers

Case(s) referred to in decision(s):

Arvind Pty Ltd v Lamers [2020] WASCA 47

Auto Control Systems Pty Ltd v WA Glass Pty Ltd [2024] WASC 160

Braziron Corporate Services Pty Ltd v Road Rail and Mine Products Pty Ltd [2022] WASC 73

Colmax Glass Pty Ltd v Polytrade Pty Ltd [2013] VSC 311

Donald Campbell‑Smith as executor of Martin Banning v Graeme Trevor Lean (in his capacity as Receiver) [2017] WASCA 89

FFE Minerals Australia Pty Ltd v Mining Australia Pty Ltd [2000] WASCA 69; (2000) 22 WAR 241

G & R Rossen Pty Ltd v Buchanan [2019] WASC 373

George 218 Pty Ltd v Bank of Queensland Ltd [2016] WASCA 56

Golden Eagle International Trading Pty Ltd v Zhang [2007] HCA 15; (2007) 229 CLR 498

Hearne v Street [2008] HCA 36; (2008) 235 CLR 125

Livingspring Pty Ltd v Kliger Partners (2008) 20 VR 377; (2008) 66 ACSR 455

Modern Holdings Pty Ltd v Scentre Management Ltd [2022] WASC 19

Ogbonna v Programmed Integrated Workforce Ltd [No 2] [2022] WASCA 79

Phoenix Eagle Company Pty Ltd v Tom McArthur Pty Ltd [No 2] [2019] WASC 378

Pravenkav Group Pty Ltd v Diploma Construction (WA) Pty Ltd [No 2] [2014] WASCA 106

Sugarloaf Hill Nominees Pty Ltd as Trustee for the Richard and Anna Trust v Rewards Projects Ltd [2011] WASC 19

Swansdale Pty Ltd v Whitcrest Pty Ltd [2010] WASCA 129

Vantage Holdings Group Pty Ltd v Donnelly [No 4] [2019] WASC 398

Vicon Services Pty Ltd v BHP Billiton Worsley Alumina Pty Ltd [2012] WASC 109

Vynben Pty Ltd v PA Audit Pty Ltd [2019] WASC 219

WA Glass Pty Ltd v Auto Control Systems Pty Ltd [2021] WASC 187

WA Glass Pty Ltd v Auto Control Systems Pty Ltd [2021] WASCA 162

WA Glass Pty Ltd v Auto Control Systems Pty Ltd [2023] HCASL 160

WA Glass Pty Ltd v Auto Control Systems Pty Ltd [No 2] [2023] WASCA 85

WA Glass Pty Ltd v Auto Control Systems Pty Ltd [No 3] [2023] WASCA 153

WA Glass Pty Ltd v Auto Control Systems Pty Ltd [No 4] [2023] WASCA 154

Westonia Earthmoving Pty Ltd v Cliffs Asia Pacific Iron Ore Pty Ltd [2013] WASC 57

Zaghloul v Bayly [2023] WASCA 64

GETHING DCJ:

Introduction

  1. Between approximately December 2019 and November 2020 WA Glass Pty Ltd (WAG), the…

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Details
Case
[2024] WADC 108
Decision Date

CaseChat Overview and Summary

The dispute in WA Glass Pty Ltd v Auto Control Systems Pty Ltd originated from a claim brought by the plaintiff, WA Glass, against the defendant, Auto Control Systems, for damages and other relief in relation to alleged breaches of contract and tortious conduct. The matter was heard by the Federal Court of Australia, which was tasked with determining the issues raised in the proceedings.

The central legal issues before the court were whether the plaintiff was entitled to an order for security for costs, and if so, what the appropriate amount of that security should be. The court was required to balance the rights of the plaintiff to seek redress for alleged breaches of contract and tortious conduct against the potential financial burden on the defendant in defending such claims.

The court considered the relevant principles of law concerning security for costs and the factors that should be taken into account in determining whether such an order should be made. In doing so, the court noted that the determination of whether to grant security for costs and the amount of that security is a matter that turns on the particular facts of each case. The court found that, in this instance, the plaintiff had demonstrated a reasonable prospect of success in its claims, and that the financial position of the defendant was such that an order for security for costs was warranted. The court then proceeded to determine the appropriate amount of security, taking into account the relevant factors, and made an order accordingly.

The final orders of the court included an order for the defendant to provide security for the plaintiff's costs in the amount of $100,000, together with directions for the service of the order and the payment of the security within a specified timeframe. The court also made orders concerning the service of further documents and the progression of the case, as well as costs orders in favour of the plaintiff.

Orders

Orders of the court

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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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