Security for costs

Question 1

which party can make this application?

Answer 1

only D (or C if there is a CC) can apply

Question 2

briefly, what are the procedural steps?

Answer 2

D request SFC first.

If C refuses, D files N244 + evidence

Question 3

what must the court determine if they grant the order?

Answer 3

court must determine amount, manner + time within which security must be given

Question 4

on what basis can the court make an order?

Answer 4

Court may only make an order if:
o Having regard to all the circumstances, it is just; +
o One of the Part 25 conditions applies

NB: this is a discretionary power.

Question 5

explain the case law principles related to justness

Answer 5

SFC less likely if:
o It will stifle the claim
o C has reasonable prospect of success
o D’s behaviour contributed to impecuniously
o C outside jurisdiction but has assets in jurisdiction
o D delayed making application

Question 6

what are the part 25 conditions?

Answer 6

• C is a resident/office out of the jurisdiction
• C is a company + it is believed they would be unable to pay costs
• C changed their address since the claim was issued to evade consequences of litigation
• C failed to give their address/gave an incorrect address on the CF
• C has taken steps to make enforcement difficult (court considers effect, not motivation i.e. taking up job abroad)