The Court refused the defendants' application for security for costs, holding that the threshold jurisdictional requirement — 'reason to believe' the plaintiff corporation would be unable to pay an adverse costs order — was not established. On the evidence, the plaintiff held over $1 million in cash reserves consistently over three years, had net assets of approximately $3.9 million, current trade receivables and payables, and up-to-date tax obligations, which collectively negated any rational basis for a belief of impecuniosity. The Court emphasised that the onus remains on the party seeking security to establish the threshold and does not shift merely because the plaintiff declines to provide all requested financial information; repeated and expanding demands for commercially sensitive documents did not convert speculation into credible testimony. The Court also found that significant delay in bringing the application — first foreshadowed in November 2024 but not filed until December 2025, approximately eight weeks before a 15-day trial — weighed heavily against the exercise of discretion, applying Re Tarrawarra Yarra Valley Holding Pty Ltd [2025] VSC 293.
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