An application for leave to appeal from a decision of the primary judge ordering security for costs in an unfunded class action commenced by a franchisee and two guarantors and shareholders. The franchisee entered into a franchise agreement under which Mr Goodwin and Mr Blackstock were Guarantors. The applicants allege breaches of contract, unconscionable conduct and unlawful exclusive dealing. The primary judge ordered the applicants to provide approximately AUD1.9m in security for costs.
The applicants sought leave to appeal from the decision of the primary judge. On appeal, the Court (Middleton and Lee JJ and Derrington J concurring in separate reasons) held that no arguable error was identified sufficient to warrant a grant of leave to appeal and there were no issues of substantial injustice if leave were to be refused. The application for leave to appeal was dismissed with costs.
Oliver Cook (with J Arnott SC) appeared for the applicants, instructed by Keypoint Law.
The judgment is published here.