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ARTICLE · 12 DECEMBER 2020

Security for costs order against liquidator denied

It is unlikely for the Court to grant a security for costs order when a liquidator is a plaintiff to the proceeding.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Security for Costs order background:

Hambleton & Anor v Idec Solutions Pty Ltd (‘Hambleton') is a recent Queensland District Court case which examined whether a security for costs application will be granted where a liquidator is a party to a proceeding.

In simple terms, court orders which require security be provided to cover legal costs in a proceeding are granted where an unsuccessful claimant could potentially not afford to pay the successful defendant's legal costs. If a security for costs order is made, the claimant will be required to provide security to the court to be used for payment of the defendant's legal costs if the defendant is successful at trial and a costs order is made in their favour.

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