Eagle Ltd v Falcon Ltd

Eagle Ltd v Falcon Ltd

The claimant is balance sheet insolvent and unable to pay a costs order; the financial position of group companies is equally troubling and does not provide adequate security. The amount sought by the defendant was excessive; a just and proportionate figure for security is £295,000, to be paid into court or secured by a bank guarantee. A parent company guarantee is not sufficient security.

Parties
Claimant/respondent: Eagle Ltd; Defendant/applicant: Falcon Ltd (formally Hawk Ltd)
Jurisdiction
England and Wales
Judgment Date
17 July 2012
Procedural Posture
Civil (commercial/contract) / Interlocutory Application for Security for Costs
Outcome
Application for security for costs granted in part
Legal Topics
Security for Costs, Impecuniosity, Disclosure, Costs Management
Civil Procedure Commercial Law Security for Costs Impecuniosity Disclosure Costs Management

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 12 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Eagle Ltd

Claimant/respondent

Falcon Ltd (formally Hawk Ltd)

Defendant/applicant

Procedural Posture

Civil (commercial/contract) / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 Whether the defendant is entitled to security for costs under CPR 25.12 and 25.13
  2. 2 Whether the claimant is unable to pay the defendant’s costs if ordered to do so
  3. 3 Whether the amount sought as security is justified and proportionate

Ratio Decidendi

The claimant is balance sheet insolvent and unable to pay a costs order; the financial position of group companies is equally troubling and does not provide adequate security. The amount sought by the defendant was excessive; a just and proportionate figure for security is £295,000, to be paid into court or secured by a bank guarantee. A parent company guarantee is not sufficient security.

Court Disposition

Application for security for costs granted in part

Orders

  • Eagle Ltd to provide security for costs in the sum of £295,000 by payment into court or bank guarantee within 28 days
  • No order for security by parent company guarantee; only cash or bank guarantee accepted