Security for costs

Security for costs in the Federal Court

A court may, in its judicial discretion, order that a party to proceedings pay security for costs which may be incurred by their opponent(s).  Costs in this sense refers to the legal costs incurred in litigating a dispute.  Where a party fails to oblige an order for security for costs the proceedings will generally be stayed until that party’s compliance is forthcoming.  These types of orders a generally granted where there are some prospects of a party failing to pay an order for costs at the conclusion of the litigation. [Read more…]

What is security for costs?

The reality of any litigious proceedings is that they cost money (sometimes, lots of money).  Where a party is successful in the proceeding; whether that be successfully proving the claim (Plaintiff) or defending it (Defendant), that party will generally be entitled to their ‘costs’.  Costs refers to the legal expenses incurred by the successful party in prosecuting or defending the claim (as the case may be).  Where a Defendant successfully defends a claim, they may be placed in the frustrating circumstance of facing a Plaintiff who does not have sufficient money to pay the Defendant’s costs.  In this article we consider a Court order designed to alleviate this problem – a security for costs order. [Read more…]

Send this to a friend