- tocCivil Procedure Rules
|Contents of this Part|
|Scope of this Part||Rule 24.1|
|Application for order for security for costs||Rule 24.2|
|Conditions to be satisfied||Rule 24.3|
|Security for costs against counter-claiming defendant||Rule 24.4|
|Enforcing order for security for costs||Rule 24.5|
- This Part deals with the power of the court to require a claimant to give security for the costs of the defendant.
- Additional provision is made in relevant enactments relating to limited companies for security to be ordered against an insolvent claimant company.
- A defendant in any proceedings may apply for an order requiring the claimant to give security for the defendant’s costs of the proceedings.
- Where practicable such an application must be made at a case management conference or pre-trial review.
- An application for security for costs must be supported by evidence on affidavit.
- The amount and nature of the security shall be such as the court thinks fit.
- The court may make an order for security for costs under rule 24.2 against a claimant only if it is satisfied, having regard to all the circumstances of the case, that it is just to make such an order, and that –
- some person other than the claimant has contributed or agreed to contribute to the claimant’s costs in return for a share of any money or property which the claimant may recover;
- the claimant –
- failed to give his or her address in the claim form;
- gave an incorrect address in the claim form; or
- has changed his or her address since the claim was commenced; with a view to evading the consequences of the litigation;
- the claimant has taken steps with a view to placing the claimant’s assets beyond the jurisdiction of the court;
- the claimant is acting as a nominal claimant, other than as a representative claimant under Part 21, and there is reason to believe that the claimant will be unable to pay the defendant’s costs if ordered to do so;
- the claimant is an assignee of the right to claim and the assignment has been made with a view to avoiding the possibility of a costs order against the assignor;
- the claimant is an external company; or
- the claimant is ordinarily resident out of the jurisdiction.
- Rules 24.2 and 24.3 apply where a defendant makes a counterclaim as if references in those rules –
- to a claimant – were references to a defendant making a counterclaim;
- to a defendant – were references to a claimant defending a counterclaim.
- On making an order for security for costs the court must also order that –
- the claim (or counterclaim) be stayed until such time as security for costs is provided in accordance with the terms of the order;
- if security is not provided in accordance with the terms of the order by a specified date, the claim (or counterclaim) be struck out