Security For Costs – Recent Developments

  The last 18 months has seen several important developments in the case law relating to applications for security for costs. This article seeks to summarise those developments and the circumstances in which an order for security for costs may be available. 

INTRODUCTION 

An order for security for costs typically protects a party defending a claim (or an appeal), the policy consideration being that a defendant should not be exposed to the risk that it will win at trial and be awarded its costs, but be unable to enforce a costs order against the claimant because, for example, of the claimant's impecuniosity.  An order for security for costs requires a claimant (although sometimes a third party) to provide an acceptable form of security (whether by way of a payment of money into court or bond or guarantee) to meet, if required, the defendant's litigation costs.