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ARTICLE · 29 SEPTEMBER 2015

ATE Insurance and security for costs – Will a deed of indemnity suffice?

Corrs Chambers Westgarth
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This case considered if an After-The-Event (ATE) insurer could provide security for costs by way of a deed of indemnity.

AustraliaInsurance
David Abernethy
David Abernethy
Jason Salman
Jason Salman
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The Victorian Supreme Court recently handed down its decision in DIF III Global Co-Investment Fund LP & Anor v BBLP LLC & Ors which considered whether an After-The-Event (ATE) insurer, based overseas, could provide security for costs by way of a deed of indemnity.

BACKGROUND

The matter concerned an application for security for costs in circumstances where the plaintiffs were not registered in, and had no assets in, Australia.

The parties agreed that the plaintiffs were to provide security however a dispute arose as to the form the security ought to take. The defendants sought security in the usual form, that is, that the plaintiffs either provide a bank guarantee or pay funds into court.

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