Event and Time
Event Description
On 8 September 2016, the respondents, Zhiren Li and Baotong Liu, purchased shares in Forever Exotic Pty Ltd from the first applicant, Zoey Mikkelsen. On 14 December 2021, the County Court found Ms. Mikkelsen and the second applicant, Jan Mikkelsen, guilty of misleading and deceptive conduct as well as negligent misstatements during the sale of shares, ordering them to pay damages to the respondents. The damages were reduced by 15% due to contributory negligence attributed to the respondents.
Application and Claims
The applicants sought leave to appeal the damages awarded and the respondents sought leave to cross-appeal regarding the contributory negligence finding. Additionally, the respondents requested an order for security for costs in the amount of $67,774.
Judicial Decisions
The core issue was whether there was an unacceptable risk that the applicants would be unable to meet a costs order if their appeal failed. The court ordered the applicants to provide security for costs in the amount requested by the respondents.
Dispute Points and Legal Basis
Dispute Points
- Applicants:
- Contested the necessity of providing security for costs, asserting sufficient financial stability and access to funds to meet potential costs orders. - Did not challenge the quantum of the security requested.
- Respondents:
- Argued that the applicants had a poor financial standing, substantiating claims of an unacceptable risk regarding costs recovery. - Consistently emphasized the risk that the applicants would not satisfy a costs order, arguing their financial disclosures demonstrated insufficient assets relative to liabilities.
Ruling and Impact
Ruling Result
The Court deemed that: