Security for costs

Security for costs

Security for costs is a common law legal concept of application only in costs jurisdictions, and is an order sought from a court in litigation.

The general rule in costs jurisdiction is that "costs follow the event". In other words, the loser in legal proceedings must pay the legal costs of the successful party. Where a defendant has a reasonable apprehension that its legal costs will not be paid for by the plaintiff if the defendant is successful, the defendant can apply to the court for an order that the plaintiff provide security for costs. Furthermore, the amount that is ordered by the Judge is in direct correlation to the strength or weakness of the plaintiff's case brought herewith.The weaker the probability of the plaintiff prevailing, the higher the security order.

Typically a plaintiff will be outside the jurisdiction of the court: the law of security for costs recognises that orders of the court relating to payment of a party's legal costs can be very difficult to enforce in non-common law jurisdictions, and so will order security to be provided. Security can also be ordered where a plaintiff is insolvent, or prone to vexatious litigation.

Security is usually provided in the form of a bank cheque paid into the court, or held in a trust account operated jointly by both the plaintiff's and defendant's lawyers.

If the defendant is successful, the money can be applied against the costs order. If the plaintiff is successful, the security is returned to the plaintiff.


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Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • security for costs — security for costs: security sometimes required of a party to litigation in order to assure payment of expenses Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. security for costs …   Law dictionary

  • security for costs — депозит, аванс для покрытия расходов, см. costs. party representation costs, arbitration costs. Сторона или стороны могут быть обязаны внести авансы (как правило, для покрытия arbitration costs.) путем уплаты денежных сумм на указываемый им счет… …   Glossary of international commercial arbitration

  • security for costs — A bond, undertaking, or deposit required of a plaintiff to secure the payment of costs in the action or the unpaid costs of a prior action. 20 Am J2d Costs §§ 37 et seq …   Ballentine's law dictionary

  • security for costs — an undertaking often required by a court of a nonresident plaintiff to pay the costs of litigation in event of an adverse result …   Useful english dictionary

  • bond for costs — See security for costs …   Ballentine's law dictionary

  • undertaking for costs — See security for costs …   Ballentine's law dictionary

  • Costs (English law) — Costs is a term of art in civil litigation in English law (the law of England and Wales), and in other Commonwealth jurisdictions. After judgment has been given, the judge has the power to order who will pay the lawyers fees and other… …   Wikipedia

  • security — se·cur·i·ty /si kyu̇r ə tē/ n pl ties 1 a: something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation used his property as security for a loan b: surety see also …   Law dictionary

  • costs — A pecuniary allowance, made to the successful party (and recoverable from the losing party), for his expenses in prosecuting or defending an action or a distinct proceeding within an action. In federal courts, costs are allowed as a matter of… …   Black's law dictionary

  • costs — A pecuniary allowance, made to the successful party (and recoverable from the losing party), for his expenses in prosecuting or defending an action or a distinct proceeding within an action. In federal courts, costs are allowed as a matter of… …   Black's law dictionary

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