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Security For Costs Notes

BPTC Law Notes > BPTC Civil Ligitation Notes

Updates Available  

A more recent version of these Security For Costs notes – written by City Law School students – is available here.

The following is a more accessble plain text extract of the PDF sample above, taken from our BPTC Civil Ligitation Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

SECURITY FOR COSTS (r25.12-13) SUMMARY OF TEST

1. Is the Respondent in the position of a claimant?

2. Condition for the Order,

3. Having regard to all the circumstances of the case, would it be just to exercise discretion in favour of making the order?

4. How much should be provided?
WHO CAN AN ORDER FOR SECURITY FOR COSTS BE MADE AGAINST?

? only a party acting as a C When does a party act as a claimant?

(a) D who counterclaims against a C (except set off, as it is a defence) (b) D to main action issuing an additional claim (in relation to third party) (c) if D brings additional claim against a third party, C does NOT act as a claimant unless third party is joined as a D

(d) if court satisfied: person who has assigned right to the claim to C in order to avoid possibility of costs order being made against him

(e) if court satisfied: person who has agreed to contribute to C's costs in return for a share of what C may recover in proceedings

(f) once permission to appeal granted: appellants to appeals, and respondents to crossappeals FULL PROCEDURE

(1) D to any claim, including part 20 claims may apply for security for his costs of the proceedings only against party acting as C (r25.12(1))

(2) D makes ASAP and without delay usually at first application for security at first case management conference, using usual part 23 'on notice' procedure

(3) D's application notice must be supported by written evidence: o state grounds on which security sought o state factors relevant to court's discretion, such as practical difficulties in enforcing costs order

o attach estimate of D's costs of defending the claim (4) The court determines whether: N.B. D has burden of proof o an enactment permits court to require security for costs; OR o one or more of following conditions is satisfied: (a) C resides outside the jurisdiction (i.e. outside Brussels Contracting State, a state bound by the Lugano Convention or a Regulation State
[mainly in mainland Europe])C = individual

o residence = C's habitual or normal residenceC = company

o residence = where central control and management are - real trade / business carried on

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