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ARTICLE · 01 FEBRUARY 2013

Security For Costs Revisited

Under Irish procedure, the general rule is that costs 'follow the event' or, more simply, the winning party is generally entitled to its costs from the losing party.

IrelandLitigation, Mediation & Arbitration

Introduction

Under Irish procedure, the general rule is that costs 'follow the event' or, more simply, the winning party is generally entitled to its costs from the losing party. In cases where a defendant believes that the case against it is unmeritorious and that the plaintiff would be unable to meet any award of costs made in its favour, it can ask the court to make an order requiring the plaintiff to give security for its costs in the event that the plaintiff does not succeed. If ordered, the need to give such security serves as a condition of being permitted to proceed with the litigation. In this way, security for costs can represent a tactical step by which a defendant can bring pressure to bear on a plaintiff by seeking security for the defendant's costs from the plaintiff before the litigation can proceed further. The case law regarding security for costs is not insubstantial and was recently reconsidered in Oltech (Systems) Limited v Olivetti UK Limited.1 Ju

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