DR - Interim apps. Security of costs Flashcards
Security of Costs: Who can make an application for security for costs?
- 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
Security of Costs: what are the two things required before a court can give security for costs?
- 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 ⚖️
Security of Costs: What are the prescribed conditions for security of costs?
- 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.🥸
Security of Costs: What is included in a security of costs application?
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💵
Security of Costs: Who sets the amount of security if the claim is successful?
The court has full discreation
Security of Costs: What forms can the security take?
- A payment into court. 🧑⚖️
- A payment to the defendant’s solicitor 🧑💼
- A bank guarantee 🏦
- An undertaking to pay costs 📝
Security of Costs: What else will the court consider?
Lindsay Parkinson v Triplan
- 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.