Part 24

Security for costs

 

Contents of this Part

Scope of this part Rule 24.1

Application for an order for security Rule 24.2

Conditions to be satisfied Rule 24.3

Security for costs against a counterclaiming defendant Rule 24.4

Enforcing an order for security for costs Rule 24.5

 

 

Scope of this part

24.1 This part deals with the ability of the court to require a

claimant to give security for the costs of the defendant.

 

Application for an order for security

24.2 (1) A defendant in any proceedings may apply for an order

requiring the claimant to give security for the defendant's

costs of the proceedings.
    1. The amount and nature of the security shall be such as the court thinks fit.
    2. An application for security for costs must be supported by evidence.

 

Conditions to be satisfied

24.3 The court may make an order for security for costs under rule 24.2

against a claimant only if it is satisfied, having regard to all the

circumstances of the case, that it is just to make such an order, and that -

(a) the claimant is ordinarily resident out of the jurisdiction; or

(b) the claimant is an overseas company and there is reason to

believe that the claimant will be unable to pay the defendant's costs if ordered to do so; or

(c) the claimant -

(i) failed to give his address in the claim form; or

(ii) gave an incorrect address in the claim form; or

(iii) has changed his address since the claim was

commenced,

with a view to evading the consequences of the litigation; or

(d) the claimant is acting as a nominal claimant, other

than as a representative claimant under Part 21 and

there is reason to believe that he will be unable to

pay the defendant's costs if ordered to do so; or

(e) the claimant is an assignee of the right to claim and the assignment has been made with a view to

avoiding the possibility of a costs order against the

assignor; or

(f) some person other than the claimant has contributed

or agreed to contribute to the claimant's costs in

return for a share of any money or property which

the claimant may recover; or

(g) the claimant has taken steps with a view to placing

his assets beyond the jurisdiction of the court.

 

Security for costs against a counterclaiming defendant

24.4 Rules 24.2 and 24.3 shall apply where a defendant makes a counterclaim as if -
    1. references in those rules to a claimant were references to a defendant making a counterclaim; and
    2. references to a defendant were references to a claimant defending a counterclaim.

 

Enforcement of an order for security for costs

24.5 On making an order for security for costs the court may also order

that -

(a) the claim (or counterclaim) be stayed until such time as

security for costs is provided in accordance with the

terms of the order; and/or

(b) that security is not provided in accordance with the terms of

the order by a specified date, the claim the claim (or

counterclaim) be struck out.