Dispute - Security for Costs

Question 1

What are the 2 high-level grounds that must be satisfied in order for the applicant to obtain an order for security of costs?

Answer 1

1) The court is satisfied that it is just to make such an order; and,
2) One (or more) of the 7 conditions applies.

Question 2

What are the 7 Conditions, one of which must be proven, in order for the applicant to obtain an order for security of costs?

Answer 2

1) The claimant is resident out of the jurisdiction (and not in a jurisdiction with convention or regulatory authority for reciprocal enforcement);

2) The claimant is a company, and there is reason to believe that it will be unable to pay the defendant’s costs if ordered to do so;

3) The claimant has changed his address after issuing proceedings with a view to evading the consequences of litigation;

4) The claimant gave a false address in the claim form, or failed to give an address in the claim form;

5) There is reason to believe the claimant will be unable to pay the defendant’s costs if ordered to do so and the claimant is a normal claimant (not a representative claimant);

6) The claimant has taken steps to prevent his assets from being recovered from;

7) There is statutory authority for security for costs.