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