Security for costs
Security for Costs
The usual costs rule in litigation is that the losing party will be ordered to pay a substantial proportion of the winning parties winning costs. However a Defendant may be confident of successfully defending a claim but may fear that the Claimant will be unable to pay any Order for Costs made by the Court. In the current economic climate this is becoming more and more frequent and it is something that should be considered at the earliest possible stage when proceedings are served. An application can be made to the Court against a company inside or outside the UK if there is reason to believe that the company will be unable to pay any Order for Costs made against it. Evidence in support will have to be submitted to the Court to show that the Claimant Company’s finances are or are potentially in a parlous state. If the Court is persuaded that the Court would be unable to pay these costs it can order security to be given to protect your position.
If you would like further information please contact Graham Young.