Security Of Costs - A Powerful Instrument In Litigation

Once a claimant decides to initiate proceedings, they inevitably incur legal costs, which they choose to undertake. Unless the defendant promptly admits culpability, they are compelled to defend the matter, thus inevitably incurring legal costs.

A defendant may be successful in defending the claim and seek to recover their legal costs; however if the claimant is unlikely to be sufficiently solvent to meet a potentially adverse result, particularly in a cross-border matters, and where the claimant is out the jurisdiction, an application for security for costs could be a powerful tool for the defendant.

What is a security for costs?

Security for costs is a legal mechanism that allows a defendant to request assurance that if they succeed in their defence against a claimant, they will be able to recover their legal costs from the claimant. This assurance typically comes in the form of a monetary deposit or guarantee paid by the claimant to the court. It acts as a