True EV Distribution Pty Ltd v Shenzhen Motors Supply Chain Management Co Ltd (No 4)

[2026] FCA 1200

Federal Court of Australia

Built by Barristers,
For Australian Law.

1. Practice and Procedure
1. application to set aside existing order dismissing proceeding
1. where proceeding dismissed automatically on non-payment of security for costs
1. where applicants’ evidence does not establish that there has been any material change of circumstances regarding ability to raise finance since proceeding dismissed

An applicant seeking to set aside a self-executing dismissal order under r 39.04(2) FCR must demonstrate a material change of circumstances since the order was made; on the facts, the applicants' evidence failed to establish any such change.
Where potential funders of security for costs have been proceeding on a materially incomplete understanding of the applicant's business position — here, that the applicant had already publicly announced cessation of its core business — the court will not treat a subsequent event (a notice of proposed termination) as the operative cause of the funding failure.
Continued accumulation of irrecoverable legal costs against impecunious applicants, coupled with contumelious disregard of court orders, weighs against setting aside a dismissal order (applying Sunshine Energy Australia Pty Ltd v Youssef [2023] FCA 189).