Introduction
Under Irish law, as a general rule, costs typically follow the
event such that the winning party recovers its party and party
costs from the unsuccessful party. Where a defendant believes that
a plaintiff has brought unmeritorious proceedings and is concerned
that the plaintiff may be unable to meet any costs order against it
in the event that it succeeds at trial, it may seek security for
its costs from the plaintiff as a condition of proceeding with the
claim.
Although the granting of security for costs is strictly
controlled, in the right case such an application can be a useful
weapon in the armoury of a defendant. While court rules govern the
general jurisdiction of the courts to make such orders1,
a statutory jurisdiction is afforded to defendants where the
plaintiff is a company. The recent High Court decision in County
Monaghan Anti-Pylon Ltd v Eirgrid plc2 has reiterated
the test applicable under that legislation.