Cold Comfort – But Comfort Nonetheless – For The Security For Costs Conundrum

There is finally some certainty for defendants in civil claims who are confident about their chances in court but who are concerned that if they ultimately win their case and obtain a costs order, the plaintiff won't be able to pay up.

These legal costs – which can amount to hundreds of thousands of Rands – can leave successful defendants significantly out of pocket, despite a court victory.

However, after a period of uncertainty, on 1 June 2015, the Supreme Court of Appeal (SCA) put this hotly contested and contentious issue to bed and, in the process, issued a strong deterrent to any South African plaintiff company who plans to institute proceedings that are vexatious, reckless or an abuse of the process.