Security for Costs Orders in Queensland

Article Summary

The case law in Queensland establishes that once a prima facie basis for security for costs is shown, such as where a plaintiff is impecunious or resides overseas, the burden shifts to the plaintiff to demonstrate why an order should not be made.

Importantly, insolvency alone does not compel the court to make an order; the central question is whether requiring security would unfairly stifle a genuine claim.

Courts adopt a holistic approach, considering both threshold and discretionary factors in tandem, and will weigh all relevant circumstances, including procedural fairness, delay, and the presence of litigation funders who stand to benefit without personal risk.