Adam Coote has written on Security for Costs – Corporations.
The solvency of a corporation which is an opposing party in the litigation should always be a consideration. But it is worth remembering that in certain circumstances an application for security for costs may assist to protect the client.
As most practitioners would be aware security for costs may be ordered in various circumstances. This is a broad topic but in this Practice Note I want to focus on situations where the plaintiff (or a counterclaimant) is a corporation and there are doubts as to whether it has sufficient assets in the jurisdiction to pay costs if ordered to do so. Moreover, I will briefly discuss the test the Courts will/should apply.
Rule 62.02(1)(b) of the Supreme Court (General Civil Procedure) Rules 2005 provides where the plaintiff is a corporation and there is reason to believe the plaintiff has insufficient assets in Victoria to pay the costs of the defendant if ordered to
the Court may, on the application of a defendant, order that the plaintiff give security for the costs of the defendant of the proceeding and that the proceeding against the defendant be stayed until the security is given.
Click here to download the full article
Adam has a common law and general commercial practice, with an emphasis on trial work.
He appears in the Supreme, County and Magistrates’ Courts and VCAT. These appearances generally require involvement in the interlocutory stages as well as final hearings. He also appears in both private and compulsory mediations in his areas of practice.
