TGIF - Eels to play defence, but without winning security for costs

This week's TGIF considers Campbell J's recent decision in Blackcitrus Pty Ltd (in liquidation) v Parramatta Rugby Club Limited [2022] NSWSC 1329, refusing to order security for costs and determining whether to strike out defences based on alleged past breaches of NRL salary cap rules.

Key takeaways

• When liquidators bring proceedings without a funder or means to meet an adverse costs order, courts may order security for costs but have discretion not to so as to avoid stultifying the proceedings.
  
  
• The content of the liquidators' reports and disclosures can become relevant for liquidators in proving that a defendant has materially contributed to the plaintiff company's insolvency.