Plaintiff/Defendant by Counterclaim v Defendant/Plaintiff by Counterclaim [2025] VSC 641 | Case summary

Supreme Court of Victoria|2025-10-10|Before: Steffensen AsJ

For the reasons addressed in Part E.1 above, this amount may be increased to allow for security for the costs of this application.
I direct counsel retained for the parties to confer on the question of costs and the form of order arising out of this ruling, including any amendment to the quantum of security to account for security for the costs of this application. Conferral should be in person or via telephone.
In the event that agreement is not reached, a short hearing will be listed at 9:30 am on 17 October 2025 to address any outstanding matters, unless the Court determines it is appropriate for the issues to be determined on the papers. Proposed minutes of order (whether consent or competing) should be provided to Chambers by no later than 4:00 pm on 15 October 2025.
The parties are discouraged from adducing evidence solely on the question of costs. Any correspondence relied upon may be provided to the Court together with the parties' proposed minutes of order.

[1] Affidavit of Peter Michael Lucarelli filed on 16 June 2025, [17]-[18] ('Lucarelli 4').

[4] On 8 September 2025, the 2015 Rules were superseded by the Supreme Court (General Civil Procedure) Rules 2025 (Vic). The rules relied upon by the parties remain unchanged.

[5] Revised Ruling, Transcript of Proceedings, Pyx Financial Group Ltd v Go Markets Pty Ltd (Supreme Court of Victoria, S ECI 2021 04653, Steffensen AsJ, 24 July 2025) 65-68.

[6] Lucarelli 4 (n 1) [31]-[33].

[8] Annexure A, Exhibit CJG-1 to the Affidavit of Christopher John Grisenti filed on 7 July 2025, 13-15 ('Annexure A').

[9] See, eg, Energy Drilling Inc v Petroz NL (1989) ATPR 40-954, cited in Yara Australia Pty Ltd v Oswal [2013] VSCA 156, [114].

[10] [2017] VSCA 293, [63]-[65] ('Trailer Trash') (citations omitted).

[11] See, eg, Armstrong Scalisi Holdings Pty Ltd v Piscopo (Trustee), Re Collins [2017] FCA 423, [23]-[28]; CJMcG Pty Ltd as Trustee for the CJMcG Superannuation Fund v Boral Limited (No 2) [2021] FCA 350.

[12] [2019] VSC 5, [51]-[53] ('Grace Christian Chapel').

[13] See, eg, Kaias Racing Pty Ltd v Burke, [2009] VSC 586, [8] ('Kaias Racing').

[19] Re Torrens Constructions Pty Ltd [2024] SASC 136; KTC v David (Security for Costs) [2024] FCA 911; McMahon Services Australia Pty Ltd v Pinkenba Quarrying & Recycling Pty Ltd [2023] FCA 360; Strazdins v ANZ Banking Group Ltd (No 2) [2017] SASC 43; Re Torrens Constructions Pty Ltd [2023] SASC 25; Kupang Resources Ltd v Elias [2018] NSWSC 1553. In addition TTM Investments Corporation Pty Ltd v Hua Chang Pty Ltd [2020] NSWSC 294 was referred to in the Aide-Memoire for context: Transcript of Proceedings, Pyx Financial Group Ltd v Go Markets Pty Ltd (Supreme Court of Victoria, S ECI 2021 04653, Steffensen AsJ, 24 July 2025) 134 ('Transcript').

[20] Transcript (n 19) 131.

[21] KTC v David (Security for Costs) [2024] FCA 911.

[22] Lucarelli 4 (n 1) [24]; Annexure A (n 8).

[23] Trailer Trash (n 10) [64].

[26] Ibid [17]; Jasmin Solar Pty Ltd v Trina Solar Australia Pty Ltd [2020] FCA 1018, [106], [109] ('Jasmin').

[27] Norcast (n 24) [18], [23].

[28] Jasmin (n 26) [106]-[110].

[29] Annexure A (n 8).

[30] Lucarelli 4 (n 1) [31]-[33]; Annexure A (n 8).

[31] See, eg, stages 1, 2, 3, 4, 5, 6, 10, 11, 12, 13 and 15 of Annexure A (n 8).

[32] Annexure A (n 8), item 3. Mr Roe and Ms Nadon are junior counsel, Messrs Lucarelli and Prowse partners, Ms Kranjec solicitor, and Mr McLachlan junior solicitor: First Letter of Instruction to Mr Grisenti dated 2 June 2025, Exhibit CJG-1 to the Affidavit of Christopher John Grisenti filed on 7 July 2025, 8 [5.1]-[5.2] ('First Letter of Instruction').

[33] Annexure A (n 8) item 7.

[35] First Letter of Instruction (n 32) 9 [6.1(f)].

[37] Transcript (n 19) 41.

[39] Affidavit of Stephen Peter Hume filed on 30 June 2025, [30] ('Hume').

[43] Plaintiff's Breakdown of the Estimated Costs, Exhibit SPH-3 to Hume (n 39), 33 ('Plaintiff's Breakdown of Estimated Costs').

[44] Trailer Trash (n 10) [63]-[65].

[45] Letter of Instruction to Mr Grisenti dated 11 June 2025, Exhibit CJG-1 to the Affidavit of Christopher John Grisenti filed on 7 July 2025, 21 [3.1] ('Second Letter of Instruction').

[52] Appendix A to Chapter I - Supreme Court (General Civil Procedure) Rules 2015 - Supreme Court Scale of Costs.

[54] First Report of Mr Grisenti dated 13 June 2025, Exhibit CJG-1 to the Affidavit of Christopher John Grisenti filed on 7 July 2025, 31 [29] ('First Grisenti Report').

[56] Second Report of Mr Grisenti dated 7 July 2025, Exhibit CJG-1 to the Affidavit of Christopher John Grisenti filed on 7 July 2025, 71-72 [12(a)] ('Second Grisenti Report'); First Grisenti Report (n 54) 31 [28].

[57] First Grisenti Report (n 54) 31 [28].

[58] Second Grisenti Report (n 56) 71-72 [12(a)].

[59] First Grisenti Report (n 54) 31-32 [30]-[33].

[60] These are the rates from 1 July 2025 for Mr Roe and Ms Nadon: Second Grisenti Report (n 56) 64 [3.5].

[61] First Grisenti Report (n 54) 32 [34], citing G E Dal Pont, Law of Costs (LexisNexis) [17.92] and Roger Quick, Quick on Costs (Thomson Reuters) [8.2220].

[62] First Grisenti Report (n 54) 32 [35].

[64] Second Grisenti Report (n 56) 72 [12(a)].

[66] Exceptions: directions hearing (item 5), Discovery (item 6) Pre-trial directions (item 9).

[67] First Grisenti Report (n 54) 34 [43].

[68] Hume (n 39) [23(a)].

[69] Second Grisenti Report (n 56) 70 [10(a)].

[70] First Grisenti Report (n 54) 32 [35(c)].

[72] Annexure A (n 8) item 3; Lucarelli 4 (n 1) [33(a)].

[73] Lucarelli 4 (n 1) [33(a)(i)]-[33(a)(ii)].

[75] Ibid [33(a)(iii)]-[33(b)(iv)].

[76] Work stage 4 (amended defence); work stage 7 (lay evidence); and work stage 8 (expert evidence).

[77] Lucarelli 4 (n 1) [24], item 3.

[78] First Grisenti Report (n 54) 34 [44], 41-42 [74]; Second Grisenti Report (n 56) 70-71 [10(b)].

[79] Hume (n 39) [23(b)], [38], [40].

[80] Affidavit of Peter Michael Lucarelli filed on 7 July 2025, [15(d)(i)] ('Lucarelli 5').

[81] First Letter of Instruction (n 32) 11-12.

[82] Lucarelli 4 (n 1) [33].

[83] Ibid [33(b)(i)], [33(b)(ii)]; Letter from K&L Gates to Baker McKenzie dated 12 May 2025, Exhibit PML-4 to Lucarelli 4 (n 1) 89-99.

[84] Lucarelli 4 (n 1) [33(b)(iii)].

[85] Annexure A (n 8) item 4; Lucarelli 4 (n 1) [33(b)].

[86] Lucarelli 4 (n 1) [24], item 4.

[88] Hume (n 39) [42]-[43].

[89] Lucarelli 4 (n 1) [33(b)(iv)].

[90] Hume (n 39) [44]-[45].

[91] First Grisenti Report (n 54) [45], [75].

[92] Plaintiff's Submissions on Security for Costs filed on 14 July 2025, [84] ('Pyx's Submissions').

[93] Transcript (n 19) 18.

[95] Letter from Baker McKenzie to K&L Gates dated 27 May 2025, Exhibit PML-4 to Lucarelli 4 (n 1) 36-39.

[96] First Grisenti Report (n 54) 42 [76].

[97] Plaintiff's Breakdown of Estimated Costs (n 43).

[98] Hume (n 39) [46]-[50].

[99] Annexure A (n 8) items 6 and 7.

[100] Hume (n 39) [21(a)]-[21(b)].

[101] Letters from K&L Gates to Baker McKenzie dated 22 April 2025 and 12 May 2025, Exhibit PML-4 to Lucarelli 4 (n 1) 100-105, 108-109.

[102] Letter from Baker McKenzie to K&L Gates dated 13 May 2025, Exhibit PML-4 to Lucarelli 4 (n 1) 110-111. See Hume (n 39) [54].

[103] Lucarelli 4 (n 1) [33(c)(iv)(B)].

[104] Annexure A (n 8).

[105] Lucarelli 4 (n 1) [28(b)].

[106] Lucarelli 4 (n 1) 7 [24], item 6; Annexure A (n 8) item 6.

[107] Hume (n 39) [23(d)(ii)].

[109] Lucarelli 4 (n 1) [33(c)(viii)(C)].

[110] Annexure A (n 8) item 7.

[113] Lucarelli 5 (n 80) 5 [15(c)].

[114] Lucarelli 4 (n 1) 7 [24], item 7.

[115] First Grisenti Report (n 54) 36 [51].

[117] Ibid 36 [52]-[54], 43 [77].

[118] Second Grisenti Report (n 56) 71 [10(d)].

[119] Order of Lyons JA made on 16 November 2023, which required the parties to make discovery by 22 December 2023; Order of Cosgrave J made on 22 October 2024, which required the parties to complete discovery of specified documents within 30 days.

[120] Lucarelli 5 (n 80) 5 [15(c)].

[121] First Grisenti Report (n 54) 43 [78].

[122] Lucarelli 4 (n 1) 7 [24], item 8.

[123] Plaintiff's Breakdown of Estimated Costs (n 43).

[124] First Grisenti Report (n 54) 36 [55]; Second Letter of Instruction (n 45) 22 [4.1]-[4.2].

[125] Lucarelli 4 (n 1) [29(e)], 7 [24].

[126] Hume (n 39) [68]-[70].

[128] First Grisenti Report (n 54) 43-44 [79].

[129] Lucarelli 4 (n 1) 7 [24].

[130] First Grisenti Report (n 54) 37 [57].

[133] Hume (n 39) [73]-[74].

[134] Lucarelli 5 (n 80) [15(d)(i)].

[135] Second Grisenti Report (n 56) 72 [12(d)].

[136] Hume (n 39) [74]-[76].

[137] Plaintiff's Breakdown of Estimated Costs (n 43).

[138] Transcript (n 19) 136.

[139] First Grisenti Report (n 54) 44 [81].

[140] Lucarelli 4 (n 1) 7 [24], items 11-14.

[141] Annexure A (n 8).

[142] Second Grisenti Report (n 56) 71 [10(f)].

[143] First Grisenti Report (n 54) 44 [81].

[144] Hume (n 39) [79].

[145] Second Grisenti Report (n 56) 72 [12(f)].

[146] First Grisenti Report (n 54) 45 [82].

[147] Transcript (n 19) 140-41.

[148] Transcript (n 19) 115-116; TTM (n 17) [27].

[149] Transcript (n 19) 116.

[150] Pyx's Submissions (n 92) [80]-[81]; Plaintiff's Breakdown of Estimated Costs (n 43); Transcript (n 19) 115-117.

[151] Transcript (n 19) 119, 121.

[153] Kaias Racing (n 13) [8].

[154] Defendant's Outline of Submissions on Security for Costs filed on 7 July 2025, [38].

[155] Grace Christian Chapel (n 12) [38].

Court (General Civil Procedure) Rules 2015

Court (General Civil Procedure) Rules 2025

PRACTICE AND PROCEDURE - Security for costs - Quantum of security - Weight to be attributed to expert evidence and evidence from the parties' solicitors as to quantum - Impact of potential duplication of work between legal practitioners - Whether quantum should be reduced due to the costs associated with the counterclaim - Whether a further discount is appropriate to account for the risk that specified costs are not incurred - Supreme Court (General Civil Procedure) Rules 2015, r 62.02 - Trailer Trash Franchise Systems Pty Ltd v Go Markets Fascia & Cutter Pty Ltd [2017] VSCA 293 - Grace Christian Chapel v Canaan Holdings Pty Ltd [2019] VSC 5 - Jabiru Satellite Ltd (in liq) (recs and mgrs apptd) v Societe Generale [2022] VSC 521 - Norcast S.ár.L v Bradken Ltd [2012] FCA 765.

Plaintiff/Defendant by Counterclaim v Defendant/Plaintiff by Counterclaim

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