DR - Interim apps. Security of costs Flashcards

1
Q

Security of Costs: Who can make an application for security for costs?

A
  • A defendant against a claimant

-A claimant against a defendant in respect of a counterclaim

-A third party against a defendant in respect of a Part 20 additional claim

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2
Q

Security of Costs: what are the two things required before a court can give security for costs?

A
  • One or more of the prescribed conditions in the rules are satisfied. ⛔️
    AND
  • Having regard to all of the circumstances of the case, it is just to make an order ⚖️
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3
Q

Security of Costs: What are the prescribed conditions for security of costs?

A
  • the claimant is resident outside of the jurisdiction 🌎 (but is not resident in a state bound by the Hague Convention)
    [individual = habitual abode]
    [company = CM&C]
  • The claimant is a company and there is reason to believe it will be unable to pay the costs if ordered to do so. 🏭
    [must show WILL be unable to pay costs AND the amount of likely costs]
  • The claimant has taken steps in relation to its assets that would make enforcement of a costs order difficult. 👣🦹‍♂️
    .
  • The claimant has changed address since the claim has commenced with a view to evading the consequences of litigation.🏠
  • The claimant failed to give an address on the claim form. 💌
  • Claimant is acting as a nominal claimant and there is reason to believe it will be unable to pay the defendant’s costs if ordered to do so.🥸
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4
Q

Security of Costs: What is included in a security of costs application?

A

Normal rules apply, plus:

  • application notice should state which grounds apply.
  • application must be supported by written evidence which should cover;
    a) the grounds, 🪧
    b) factors in the court’s discretion, ⚖️
    .
    c) the likely costs to trial 💰
    d) the amount of security requested💵
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5
Q

Security of Costs: Who sets the amount of security if the claim is successful?

A

The court has full discreation

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6
Q

Security of Costs: What forms can the security take?

A
  • A payment into court. 🧑‍⚖️
  • A payment to the defendant’s solicitor 🧑‍💼
  • A bank guarantee 🏦
  • An undertaking to pay costs 📝
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7
Q

Security of Costs: What else will the court consider?

Lindsay Parkinson v Triplan

A
  • Admission of liability by defendant
  • Claim appears not to be genuine claim or has little prospect of success
  • Delay will make less likely to succeed.
  • If the defendant has been responsible for the claimant’s financial difficulties
    will made defendant’s claim for security more likely to succeed.
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