Special Circumstances To Consider When Applying For Security For Costs In Appeals

The Court of Appeal has provided some valuable insights into the nature, content and relevant parameters of what constitutes "special circumstances" in the context of appeals to the NSW Court of Appeal.

Background to the case

Acting for the respondents in this case, our clients (FAL Healthy Beverages Pty Ltd (FAL HB) and its subsidiary FAL Retail Pty Ltd (FAL Retail)) originally brought proceedings in the Supreme Court of NSW against the then defendant (now appellant) for breach of statutory duties under the Corporations Act (Cth) 2001 and fiduciary duties in connection with several unauthorised transactions which benefited him financially. The defendant was the (former) director and chief executive officer of both FAL HB and FAL Retail (with both appointments ending in February 2016).