court order re costs

FYI

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
No: (P)NSD2355/2007



CHAMELEON MINING NL
Plaintiff

MURCHISON METALS LIMITED ACN 078 257 799
First Defendant

PHILLIP FELICE GRIMALDI
Second Defendant

GREGORY BENNETT BARNES
Third Defendant

CROSSLANDS RESOURCES LTD ACN 061 262 397
Fourth Defendant

PINNACLE NOMINEES PTY LTD ACN 008 928 443
Fifth Defendant

ORDER

JUDGE:
Justice Jacobson
DATE OF ORDER:
12 May 2008
WHERE MADE:
Sydney


BY CONSENT, THE COURT ORDERS THAT:

In relation to the Applicant and First and Fourth Respondents
1. In relation to the First and Fouth Respondents’ Notice of Motion for security for costs dated 25 February 2008, the Applicant provide to the First and Fourth Respondents by way of security for costs bank guarantees in a form acceptable to the First and Fourth Respondents or, in the event of any dispute, in a form acceptable to the Registrar:
(a) for the amount of $300,000 by 4pm (Sydney time) on or before 26 May 2008;
(b) for the amount of $300,000 at the completion of the service of all lay evidence; and
(c) a further amount to be agreed between the Applicant and First and Fourth Respondents and, if not agreed, as determined by the Court, within 7 days of any order setting the matter down for trial.
2. The First and Fourth Respondents have liberty to apply at any time to seek to increase the amount of security.
3. The Applicant pay the First and Fourth Respondents’ costs of and incidental to the Notice of Motion (referred to in Order 1), up to and including 12 May 2008.

In relation to the Applicant and Second Respondent
4. In relation to the Second Respondent’s Notice of Motion for security for costs dated 25 February 2008, the Applicant provide to the Second Respondent by way of security for costs the amount of $915,000 by way of bank guarantees as set out in Order 5 or otherwise by a bank guarantee in a form acceptable to the Second Respondent or in the event of any dispute in a form acceptable to the Registrar.
5. The security for costs referred to in Order 4 be provided in the following way:
(a) for the amount of $250,000 by 4pm on or before 26 May 2008;
(b) for the amount of $280,000 within seven days of the date fixed by the Court for the service of the Second Respondent’s lay evidence, or service of the Second Respondent’s lay evidence, whichever is the later;
(c) for the amount of $385,000 within seven days of any order setting the matter down for trial being made;
6. As against the Second Respondent, the proceedings be stayed pending the provision of security in accordance with paragraph 5(a) above and/or in default of provision of the instalments referred to in paragraphs 5(b) and (c) above.
7. The applicant pay the Second Respondent’s costs of an incidental to the Notice of Motion (referred to in Order 4), up to and including 12 May 2008, except that the Second Respondent’s costs in respect of the Applicant’s notice of motion of 20 March 2008 seeking to set aside the Second Respondent’s notice to produce of 38 February 2008 should be costs in the cause.

In relation to the Applicant and Third and Fifth Respondents
8. Within 21 days the Applicant is to provide security for the costs of the Third and Fifth Respondents in the sum of $100,000 in the form of an unconditional, irrevocable bank guarantee from an Australian bank.
9. Within 7 days of orders being made requiring the parties to undertake discovery and inspection of documents, the Applicant is to provide further security for the costs of the Third and Fifth Respondents (up to but not including costs incurred in preparing for and conducting the hearing) in the sum of $150,000 in the form of an unconditional, irrevocable bank guarantee from an Australian bank.
10. The Third and Fifth Respondents have liberty to apply for additional security for their costs upon 7 days’ notice to the Applicant.
11. The Notice of Motion of the Third and Fifth Respondents dated 12 March 2008 be adjourned with liberty to relists and apply in accordance with Order 10 above.
12. Costs of the Notice of Motion referred to in Order 11 above are reserved.
13. Each of the Applicant and Third and Fifth Respondents pay their own costs of the Applicant’s Notice of Motion dated 7 May 2008.

THE COURT FURTHER ORDERS THAT:
14. The Applicant’s Notice of Motion filed 20 March 2008 be dismissed.

THE COURT NOTES THAT:
1. The Applicant discontinues its Notice of Motion dated 7 May 2008.



Date that entry is stamped:


Deputy District Registrar