Kartik Mittal offers some tips on securing security for costs orders
An application for security for costs is a popular and effective tool used by lawyers in litigation and arbitration to protect the defendant against the risk that the claimants, if they lose, will not discharge their obligations under a costs order made against them. One of the grounds under which the defendant can request the court to make an order for security for costs is that the claimant is resident out of the jurisdiction of the courts of England and Wales (CPR r 25.13(2)(a)).
To be successful in an application for security for costs the defendant is required to prove that:
- The claimant is resident out of jurisdiction but not resident in a Brussels or Lugano Convention state
- The countries currently governed by the Brussels and Lugano Conventions are the member states of the EC and the European Free Trade Area.
There will be obstacles to or a burden of enforcement
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