Security for costs—level of security

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

  • Security for costs—level of security
  • Burden of proof
  • General approach of the court to the level of security
  • Standard or indemnity costs basis when determining the level of security
  • Broadbrush approach the level of security
  • Does the 1/3 rule exist?
  • Respondent’s ability to pay any costs order
  • Value of the assets available for security
  • Excessive level of security
  • Effect of costs budgets on the level of security
  • 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 the level of security the court may order and determining an application for security for costs. It is part of a suite of Practice Notes considering issues relating to security for costs under CPR 25. These 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—ATE insurance

  7. Security for costs—after an order is made

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

  9. Security for costs—equivalent orders

There are also other Civil Procedure Rules provisions which provide for orders which are equivalent to a security for costs order. For more information, see Practice Note: Security for costs—equivalent orders.

Burden of proof

The party applying for security for costs will set out the amount of security sought in the application notice. The burden of proof will be on that party to show that the amount of security is appropriate and, in doing so, a summary statement of costs will normally be provided with the supporting evidence.

General approach of the court to the level of security


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