Security for costs—requirements and conditions (CPR 25.13)

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

  • Security for costs—requirements and conditions (CPR 25.13)
  • The requirement for there to be a claim
  • What constitutes a ‘claim’
  • What constitutes ‘proceedings’
  • Conditions to be satisfied
  • Conditions to be met
  • Condition—resident outside the jurisdiction (CPR 25.13(2)(a))
  • Jurisdictional conditions—determining residency
  • Whether the claimant is in a position to pay costs
  • Determining quantum or level of security for costs
  • 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.

In addition, in some instances the court is required to consider the issue of human rights under the European Convention on Human Rights (ECHR) as implemented by the Human Rights Act 1998 (HRA 1998). For the impact of Brexit, see Q&A: What does Brexit mean for the Human Rights Act 1998?

This Practice Note explains the requirements under CPR 25.12 which need to be met to enable a court to order security for costs against the claimant (or counterclaiming defendant). It looks at the conditions in CPR 25.13 that need to be satisfied including residency, solvency, and avoidance of enforcement. The effect of nominal claimants and co-extensive claims are also discussed. 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—making an application

  3. Security for costs—counterclaims and set offs

  4. Security for costs—additional security

  5. Security for costs—level of 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 CPR provisions which provide for

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