Security for Costs: Civil Aspects Compared with Criminal and
Arbitration
INTRODUCTION
In litigation, the usual position in relation to
costs is that the unsuccessful party will be ordered to pay the
successful party's recoverable costs. Such costs may be
substantial, especially when dealing with cases involving a foreign
element which gives rise to additional costs, e.g., travel, expert
evidence on law, etc. While a defendant may be confident of their
ability to defend the claim, they may nevertheless have concerns
about potential difficulties in seeking to recover costs provided
for in any costs order against the claimant. The purpose of a
security for costs order, an interim remedy, is to alleviate that
concern by requiring the claimant to pay money into court, or to
provide some other form of security, as a precondition to being
able to continue with the claim. Where an order for security for
costs is made, the proceedings will often be stayed, pending
payment
