Security For Costs Explained
As discussed in Volume 1, Number 4, an unsuccessful party
at trial is generally required to pay 60 percent of the successful
party's legal fees. Thus, if the successful party incurred
costs of $100,000, the unsuccessful party is responsible to pay the
successful party $60,000, in addition to paying his own legal
fees.
But what happens if a plaintiff, with minimal assets, sues a
defendant, loses at trial, and is unable to pay 60 percent of the
defendant's legal fees? More importantly, what happens if a
defendant knows in advance of trial that even if successful, the
plaintiff will not be able to pay his legal fees? Is it fair to put
the defendant in that situation knowing he will not be repaid in
any circumstance? This is where the concept of security for costs
comes in. It requires a plaintiff to post money into court in
advance of each step of the lawsuit, thereby ensuring sufficient
funds are available to the defendant if the
