4.22: Considerations for security for costs order
14.67: Security for costs

Case Summary

At Trial, the Applicant had been awarded damages for the Respondent’s failure to transfer land in accordance with a written agreement. The Respondent appealed without satisfying an adverse Costs award arising from Trial, and the Applicant sought Security for Costs pursuant to Rule 4.22, as referred to in Rule 14.67 for the purposes of Appeal.

Justice Veldhuis considered whether it was reasonable and just to award Security for Costs, reviewing each of the prescribed factors in turn. While Her Ladyship was not able to find that the Appeal was without merit, the Court’s analysis of the remaining factors militated in favour of an award of Security for Costs, as the Respondent would be unable to pay Costs if his Appeal failed; it was unlikely that the Applicant would be able to enforce an Order or Judgment against the Respondent; and there was no evidence that Security for Costs would unduly prejudice the Respondent’s ability to continue with the Appeal. Accordingly, the Applicant had satisfied its onus in persuading the Court that an Order for Security for Costs should be issued, and the Respondent did not provide reason for the Court to order otherwise.

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