Crosswest v Allstrike Enterprises [2014] WASC 27

The borrower sought a declaration that two mortgages were void. The lender applied for security of costs on the basis of the likely inability of the mortgagor to pay any costs.

The court refused the application on the following grounds:

  1. The owner of the company gave a personal undertaking;
  2. The borrower’s assets were the subject of mortgages whose validity was the central issue in the proceedings;
  3. Ordering security would effectively shut down the case;
  4. The proceedings were defensive in character;
  5. On the evidence before the court little could be said about the merits of the case.

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