Contract With Security For Costs In Wake
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Pursuant to the United Nations Commission on International Trade Law ("UNCITRAL") Arbitration Rules 2021, a tribunal has the power to "provide a means of preserving assets out of which a subsequent award may be satisfied" (Article 26(2)(c) of the UNCITRAL Arbitration Rules 2021 and Article 17(2)(c) of the UNCITRAL ...
The normal rule in Irish litigation is that costs follow the event, i.e. the losing party pays the other party's legal costs. Where there is a real concern about the financial position of the party bringing the proceedings, the defendant may look for what is known as an order for security for costs.
One option available to a defendant is to make an application for security for costs – essentially, a court order, which allows a party to ensure that they will be compensated for their legal costs for representation if they succeed in defending a claim.
The Crabtree Principle: counterclaims - If counterclaimant going beyond self defence and launching a claim of their own, court will usually order no security or that both sides put up security.
The test is therefore twofold, firstly that the Court is satisfied that it is just to make the order, and secondly, one or more of the conditions in ss2 or an enactment permits the court to order security.
A court order at the end of an interim application in litigation, or other part of proceedings, that the costs of that application, or part of proceedings, will be in favour of the party who is successful (and in favour of whom a costs order is made) at the end of the proceedings.
'Costs of and caused by' has the effect that where the court makes this order on an application, the party in whose favour the costs order is made is entitled to the costs of preparing for and attending the application and also the costs of any consequential issues.