Case Alert - [2018] EWHC 95 (Comm)
Court considers whether deed of indemnity from insurer is
adequate security for costs
When the defendants intimated that they were going to make a
security for costs application, the claimants' solicitors
offered to give undertakings to hold sums of money as security for
certain costs. The defendants accepted this. However, the claimants
subsequently wanted to exchange those undertakings for a Deed of
Indemnity provided by one of the claimants' ATE insurers. The
defendants objected and the claimants sought an order from the
court. Two issues arose:
(1) Was the Deed of Indemnity an acceptable form of
security?
If it was, there was no need to consider the ATE policy. The
judge held that, on the facts, it did provide adequate security. An
offer to endorse the policy to the effect that monies paid out
under the policy would be paid to the defendants' solicitors
avoided the possibility that the insurer might first pay
