CD Munich, December 17, 2024, Order, UPC 252/2023

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1. Key takeaways

Release of Security for Costs Requires Independent Financial Standing

The UPC held that R. 352.2 RoP also applies to the release of a security for legal costs, even though this is not explicitly mentioned in Rule 158 RoP, which governs the imposition of such securities. The Court ultimately rejected Claimant's request to release the security as Claimant failed to demonstrate its own, independent financial capacity to pay potential cost awards, despite undergoing restructuring and being acquired by a financially sound parent company.

The Court emphasized that the financial standing of the party itself, not its parent company or group, is the decisive factor for assessing a request to release a security for costs.