Wu v Bi

The parties in the case of Wu v Bi were the applicant, Wu, and the respondents, Bi. The nature of the dispute involved an application for leave to appeal against a decision regarding security for costs. The court hearing the matter was the Supreme Court of Victoria. The central issue before the court was whether an unacceptable risk existed that an order for security for costs in favour of the respondents would go unsatisfied, and if the applicant was impecunious.

The court had to determine whether there was an unacceptable risk that the applicant, Wu, would be unable to satisfy an order for security for costs in favour of the respondents. This assessment involved considering Wu’s financial circumstances, including the fact that he was the subject of a bankruptcy proceeding in respect of an unpaid judgment debt and that there was a separate proceeding against him claiming an amount in excess of the unencumbered interest in his land. The applicant admitted to experiencing cash flow problems but argued that he possessed valuable shareholding assets. The court was required to weigh these factors in determining the acceptability of the risk of costs going unsatisfied.

The court concluded that the risk of Wu being unable to satisfy an order for security for costs was unacceptable, particularly when considering the likely merits of the proposed appeal. The court applied the principles established in Djordjevich v Rohrt, noting that the risk was unacceptable given Wu’s financial situation. The court further referenced Supreme Court (General Civil Procedure) Rules 2015 r 64.38(2) in reaching its decision. As a result, the court granted the application for leave to appeal.