[2022] WASC 341
General information, not legal advice.
Supreme Court of WA
2022-10-13
Martin J
Original judgment source is linked above.
[27] Order 25 r 1 of the Rules of the Supreme Court 1971 (WA) (RSC) provides that this court may order that security for costs be provided by a plaintiff, but that no order shall be made merely on account of the poverty of the plaintiff, or the likely inability of a plaintiff to pay any costs which may be awarded against the plaintiff.
[28] Order 25 r 2 then sets out a non-exhaustive list of grounds for ordering security for costs, but without detracting from the generality of RSC O 25 r 1.
[29] Order 25 r 3 provides that the power to require the granting of security is discretionary. It lists three factors a court must take into account when exercising that discretion.
The granting of security shall be in the discretion of the Court, and in determining whether an order should be made the Court shall take into consideration -
(a) the prima facie merits of the claim;
(b) what property within the jurisdiction may be available to satisfy any order for costs against the plaintiff;
(c) whether the normal processes of the Court would be available within the jurisdiction for enforcement of any order for costs made against the plaintiff.
[30] The factors specified under O 25 r 3 are also not exhaustive: see Engel Pty Ltd (In Liq) v Leeds (Unreported, WASC Full Court, Library No 940403, 20 July 1994) 3 (Malcolm CJ).
[31] Any exercise by the court of its power to order security is always an order made to serve the interests of justice: Ailakis v Olivero [2013] WASCA 91. While the power has been described as being 'unfettered', it must be exercised judicially: Mann v Dabelstein [2006] WASCA 176 [16]. The circumstances that may bear upon the exercise of the discretionary power are broad.
[32] Mabrouk Minerals Pty Ltd v Mabrouk Holdings Ltd [2008] WASC 132 dealt with an application for security for costs against a corporation, which raises a somewhat more liberal environment towards ordering security for costs. Nevertheless, Newnes J (as his Honour then was) observed at [57]:
'It is well-established that the discretion to order security for costs is unfettered and depends upon an examination of all the relevant circumstances. The circumstances in which the discretion should be exercised cannot be stated exhaustively. They will vary from case to case and the weight to be given to any circumstance in a particular case will depend not only upon its own intrinsic persuasiveness but upon the impact of the other circumstances which have to be weighed: PS Chellaram & Co Ltd v China Ocean Shipping Co [1991] HCA 36; (1991) 102 ALR 321, 323.'
[33] In Knight v Beyond Properties Pty Ltd [2005] FCA 764 [32] Lindgren J observed upon a disinclination of courts to order a plaintiff who is a natural person to provide security for costs, at least in the absence of some other presenting factor beyond mere impecuniosity, citing numerous case authorities reiterating the policy importance of facilitating the ready access of natural persons to the courts. Relevantly, Lindgren J continued at [33] to observe:
'In the cases in which natural persons have been ordered to provide security, some factor in addition to impecuniosity has been present: cf Barton v Minister for Foreign Affairs [1984] FCA 89; (1984) 2 FCR 463 (Morling J) at 594 (impecuniosity and residence outside Australia); Cunningham v Olliver (unreported, Burchett J, 21 November 1994) but for delay, security would have been ordered on ground of impecuniosity and bringing of claim to a significant extent for benefit of others); Chang v Comcare Australia [1999] FCA 1677 (Moore J) at [32] (impecuniosity and lack of prospects of success); Loque v Hanson Technologies Ltd [2003] FCA 81 (Weinberg J) (impecuniosity and residence outside Australia); Morris v Hanley [2000] NSWSC 957 (Young J) at [21], [38] and [39] (but for delay, Young J would have ordered security on grounds of impecuniosity and lack of prospects of success and large costs involved to defendants. Young J's decision was reversed on appeal on the ground that defendants had not adequately explained their delay in moving for security, but the Court of Appeal did not consider other aspects of his Honour's reasons: see Morris v Hanley & Ors [2001] NSWCA 374 at [30] - [31]; Melville v Craig Nowlan & Associates Pty Ltd (2002) 54 NSWLR 82 (CA) at [132] (per Heydon JA) (impecuniosity and applicant's failure to show that order would stultify proceeding and sum ordered by primary Judge not oppressive). (original emphasis)
[34] It is necessary to point out that Western Australian RSC O 25 r 1 has been, at least until recently, somewhat unique in Australia among the many rules of different courts governing the power of a court to issue an order for security. This is because RSC O 25 r 1 expressly provides that an order for security for costs cannot be made merely on account of a plaintiff's impecuniosity. However, that position has now been adopted elsewhere. The Uniform Civil Procedure Rules 2005 (NSW) (UCPR) were amended in 2013 to include a new rule, r 42.21(1B), which provides:
'If the plaintiff is a natural person, an order for security for costs cannot be made merely on account of his or her impecuniosity.'
[35] Prior to r 42.21(1B), the impecuniosity of a natural person plaintiff was 'one factor that may be relevant among many', although New South Wales courts looked to usually apply the recognised common law principle that poverty is no bar to a litigant, unless some extra factor was present - see NSW Law Reform Commission, Security for Costs and Associated Orders, Report 137 (2012) [2.65] - [2.69]; Morris v Hanley [2001] NSWCA 374; Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744; Green v CGU Insurance Ltd [2008] NSWCA 148; Viavattene v Morton [2011] NSWSC 1173. I observe that Ritchie's Uniform Civil Procedure NSW currently states, at 42.21.10C:
'... the mere impecuniosity of a 'natural person' plaintiff provides no basis for ordering security for costs: UCPR r 42.21(1B) and Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744; BC 200105623 at [53]; O'Neill v De Leo [1993] TASSC 162; [1993] 2 Tas R 225 (legal aided plaintiff). However, if the power to order security was authorised on other grounds, the impecuniosity of a natural plaintiff can be a relevant consideration in the exercise of the discretion.'
[36] There is no rule or provision analogous to RSC O 25 r 1, or UCPR r 42.21(1B) in the Federal courts. The comments by Lindgren J in Knight v Beyond Properties Pty Ltd are to be understood in that context.
[37] For the present application it is also relevant to consider and weigh together the principles of case management which are necessarily applicable to matters in the Commercial and Managed Cases (CMC) List (see Trafalgar West Investments Pty Ltd As Trustee For The Trafalgar West Investments Trust v Superior Lawns Australia Pty Ltd [No 3] [2013] WASC 150 [9] - [10]. All defamation actions commenced in this court are case managed in the CMC List of an allocated CMC judge.
(a) 27 January 2022 (folio 25);
(b) 10 March 2022 (folio 27); and
(c) 14 April 2022 (folio 29).
There were no objections taken to any of the material read from these affidavits.
4.7 I am not paid by the Trust a salary for my role as manager of the Indian Supermarkets but, rather, receive distributions from the Trust. The level of distributions being dictated by the revenue earned by the Trust from the Indian supermarkets.
(1) Subject to rule 5(1), 2 or more persons may be joined together in one action as plaintiffs or as defendants with the leave of the Court or where -
(a) if separate actions were brought by or against each of them, as the case may be, some common question of law or fact would arise in all of the actions; and
(b) all rights to relief claimed in the action (whether they are joint, several or alternative) are in respect of or arise out of the same transaction or series of transactions.
#i_boycott_ellenbrookindiangrocer_sandeepbhatia_over_his_hatred_ comments_on_farmers_challenge I nominate ... (various 19 person are named).
6.1 the Plaintiff made statements inciting hatred of Indian farmers who participated in the Delhi Protests;
- concerning a suggested negative financial impact of the 17 publications complained about against the Indian supermarkets, which is not supported by the evidence before the Court. 5. In the face of these concerns about a less than fulsome explanation of the financial position of the plaintiff as was put to the Court, there are, at the end, further considerations all established going beyond mere impecuniosity. That provides the sufficient platform to support an order for security.
(a) payment into court by the plaintiff of $50,000 within 28 days;
(b) payment of a further $100,000 within 28 days after the completion of discovery on both sides in the action; and
(c) a further payment of $100,000 upon the entry of the matter for trial.
Republished a third-party Google review for a business operated by the plaintiff accompanied by a statement in a WhatsApp group
Published various statements accompanied by a photograph in the comment section of a post on a third-party's personal Facebook page
Republished a third-party statement on personal Facebook page
Published a video containing verbatim statements on personal TikTok account
Published a screenshot of a third-party statement in a WhatsApp group
Published a statement accompanied by a photograph of a statement made by the plaintiff in a WhatsApp group
Published a statement in a Facebook group and republished that statement to personal Facebook page
Published a statement accompanied by a screenshot of a statement made by the plaintiff on personal Facebook page
Published a statement on personal Facebook page and published same statement accompanied by a screenshot of a statement made by the plaintiff in a Facebook group
Published a statement accompanied by a screenshot on personal Facebook page
Published a statement accompanied by a screenshot in the comment section of a post on a third-party's Facebook page
Published a statement in the comment section of a post on a third-party's Facebook page
Published a Google review and 1 star rating on a Google business page for a business operated by the plaintiff
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
Research Associate to the Honourable Justice K Martin
(1984) 2 FCR 463
(1991) 102 ALR 321
(2002) 54 NSWLR 82