Q&As

Is security for costs available against a company prior to starting proceeding? Just because a company is based abroad in a non-convention state, is security for costs automatically granted?

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Produced in partnership with Leigh Callaway of Fladgate
Published on: 12 December 2018
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Is security for Costs available against a company prior to starting proceedings?

Security for costs is only available when there are actual court proceedings. It is not available Pre-action. Although pre-action costs can be recovered in litigation and may, therefore, form part of an application for security, there is little that defendants can do to protect themselves regarding pre-action costs if there is no subsequent litigation.

For guidance on recovering pre-action costs, see Practice Note: Pre-action—costs recovery.

Just because a company is based abroad in a non-convention state, is security for costs automatically granted?

Pursuant to CPR 25.13, a court may make an order for security for costs if:

‘it is satisfied, having regard to all the circumstances of the case, that it is just to make such an order, and… one or more of the conditions

Leigh Callaway
Leigh Callaway

Fladgate

Leigh is a Senior Associate in the dispute resolution team at Fladgate LLP, specialising in commercial litigation, international arbitration and mediation.

He has a broad range of experience with a particular focus on banking and financial services litigation and civil fraud. Leigh’s practice also covers arbitration and more general commercial litigation work, often with an international element, including breach of contract, misrepresentation, warranty claims, and professional negligence.

Leigh is a co-founder and committee member of the Junior London Solicitors Litigation Association and the Commercial Litigation Associates Forum, and member of the Young Fraud Lawyers Association. He also writes regularly in the legal press, including the New Law Journal and the Solicitor’s Journal.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
security definition
What does security mean?

money deposited to ensure that the defendant attends court;

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