Chancery Division

Briggs J 

16 January 2008

The first claimant was an unlimited company whose only shareholder was SJ. The second claimant was a limited company and was wholly owned by the first claimant. Both companies were incorporated in the United Kingdom. Following the issue of proceedings, the defendants sought, inter alia, security for costs, in respect of the first defendant, for £150,000, representing the costs of the proceedings incurred by him to date, and, in respect of the second defendant, £252,000, reflecting 60% of her estimated costs of the action.

The claimants argued that the defendants' application under CPR 25(13)(c) could not succeed as the court had no jurisdiction to order security for costs against an unlimited company incorporated within the jurisdiction

Part 25(13)(c) of the CPR plainly contemplated security for costs to be ordered against any corporate body anywhere.

In the circumstances of the instant case, there was a significant danger that the companies would not pay a costs award that might be made against them. On the evidence, the court should exercise its discretion to award the security for costs sought.

Security in the sums of £150,000 and £252,000 would be paid into court in relation to the claims made against the first and second defendants.

Stephen Auld QC and Jonathan Caplan (instructed by Mischon De Reya) for the claimant.

James Aldridge (instructed by Harbottle & Lewis) for the first defendant.

Tom Weisselberg (instructed by Byrne & Partners) for the second defendant.

Gareth Williams Barrister.

Full case on LNB

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