Security for costs—payment into and out of court

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

  • Security for costs—payment into and out of court
  • Requirement to pay funds into court
  • Paying funds into court—payment
  • Paying funds into court—service
  • Payer retains property in the money
  • Application for funds to be paid out to a party
  • Application for surplus funds to be paid to meet a judgment

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 is written on the basis that the security for costs application was brought by the claimant. However, the principles apply in other scenarios as well eg where the application is brought by the claimant against a counterclaiming defendant.

This Practice Note considers the procedure for paying monies into court following an order being made for security for costs. Payment is made to the Court Funds Office. The Practice Note then considers how to apply for payment to be made out of the Court Funds Office either to the successful defendant, once an order for costs has been made in favour of that defendant, or to the claimant if the claimant is successful in their claim such that no costs order is made in favour of the defendant. Finally the Practice Note considers whether, in the event that the defendant is successful and there are surplus funds with the court after payment of the costs order, whether an application can be made by the defendant for any surplus funds to be made to the defendant in full or part settlement of any judgment.

It is one of a series of Practice Notes considering issues

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