KembaraXtra - Legal Terms - Security for Costs

Security for costs is a court order requiring a claimant in civil proceedings to provide money or other security before being allowed to continue with the litigation. The purpose is to protect the defendant from the risk of being unable to recover legal costs if the claimant ultimately loses the case. It is a discretionary remedy exercised by the court. Security is not granted automatically. The court carefully considers the justice of each application.

The court may order security for costs only in specified circumstances. These include cases where the claimant ordinarily resides outside the court’s jurisdiction, sues on behalf of someone unable to pay costs, dishonestly provides an incorrect address, or changes address during proceedings to evade the consequences of litigation. The defendant bears the burden of establishing that one of these circumstances exists. The court then considers whether making the order would be just. Judicial discretion remains central.

Where security is ordered, the claimant usually pays a specified sum into court or provides another acceptable form of financial guarantee. The litigation may be stayed until the security has been provided. Failure to comply with the order may result in the claim being dismissed or struck out. The amount ordered seeks to reflect the defendant’s anticipated recoverable costs. The court avoids imposing excessive financial burdens.

A defendant cannot ordinarily be required to provide security for costs. The remedy is intended solely to protect defendants against the risk of unrecoverable legal expenses arising from unsuccessful claims. Courts must balance the defendant’s legitimate interests against the claimant’s right of access to justice. Security orders should not be used to prevent genuine claims from proceeding. Proportionality is therefore an important consideration.

Security for costs is an important procedural mechanism within civil litigation. It promotes fairness by protecting defendants from financial prejudice while ensuring that claims proceed responsibly. Judicial discretion enables courts to tailor orders according to the facts of individual cases. The remedy encourages proper conduct throughout litigation without unnecessarily restricting access to the courts. It remains a significant feature of civil procedure.