Security for costs—after an order is made
Security for costs—after an order is made

The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:

  • Security for costs—after an order is made
  • Requirement to comply with the order
  • Failure to comply with a security for costs order
  • Failure to comply in the Commercial Court
  • Failure to comply by a company
  • Failure to comply—practical considerations
  • Varying an order
  • Security for costs is time limited and lapses
  • Stay pending payment
  • Security for costs for an appeal
  • more

Brexit: The UK's departure from the EU on exit day, ie Friday 31 January 2020, has implications for practitioners considering security for costs. For guidance, see: Cross border considerations—checklist—Brexit—impact on CPR.

This Practice Note considers issues that may be relevant after an order for security for costs has been made. It is one of a series which considers issues relating to security for costs under CPR 25. The other Practice Notes are:

  1. Security for costs—what is it, its use and the court's discretion

  2. Security for costs—requirements and conditions (CPR 25.13)

  3. Security for costs—making an application

  4. Security for costs—counterclaims and set offs

  5. Security for costs—additional security

  6. Security for costs—level of security

  7. Security for costs—ATE insurance

  8. Security for costs—payment into and out of court

  9. Security for costs—equivalent orders

Failure to comply with a security for costs order

Where the court has made an order for security for costs, the party against which it has been made must ensure that it complies with the terms of the order. The courts are keen to promote pro-active and robust case management and a large part of this is ensuring compliance with rules, practice directions and court orders.

The effect of a failure to comply with the unless order will obviously depend on the facts of the case, but the Court of Appeal noted that where a judgment