Lobster Group Ltd v Heidelberg Graphic Equipment Ltd & Anor [2008] EWHC 413 (TCC) (06 March 2008)

Lobster Group Ltd v Heidelberg Graphic Equipment Ltd & Anor [2008] EWHC 413 (TCC) (06 March 2008)

Security for costs should not include pre-action mediation costs where parties agreed to bear their own costs, and should only cover costs from commencement of proceedings to exchange of witness statements. Delay and the nature of pre-action costs militate against their inclusion in security. Quantum must be reasonable and not penal.

Citation
[2008] EWHC 413 (TCC)
Parties
Claimant: Lobster Group Limited; 1st Defendant: Heidelberg Graphic Equipment Limited; 2nd Defendant: Close Asset Finance Limited
Jurisdiction
England and Wales
Judgment Date
06 March 2008
Procedural Posture
Security for Costs Application / Interlocutory (pre Trial)
Outcome
Security for costs ordered in part
Legal Topics
Security for Costs, Pre Action Costs, Mediation Costs, Delay in Applications, Liquidation and Administration, Costs Recovery
Civil Procedure Insolvency Commercial Law Security for Costs Pre Action Costs Mediation Costs Delay in Applications Liquidation and Administration +1 more

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Parties

Lobster Group Limited

Claimant

Heidelberg Graphic Equipment Limited

1st Defendant

Close Asset Finance Limited

2nd Defendant

Procedural Posture

Security for Costs Application / Interlocutory (pre Trial)

Legal Issues

  1. 1 Whether security for costs should include pre-action costs, particularly mediation costs
  2. 2 Whether security should cover costs from commencement of proceedings to application for security
  3. 3 Appropriate quantum of security

Ratio Decidendi

Security for costs should not include pre-action mediation costs where parties agreed to bear their own costs, and should only cover costs from commencement of proceedings to exchange of witness statements. Delay and the nature of pre-action costs militate against their inclusion in security. Quantum must be reasonable and not penal.

Court Disposition

Security for costs ordered in part

Orders

  • Claimant to provide security for costs to 2nd Defendant up to exchange of witness statements in sum of £37,000.
  • Claimant to provide security for costs to 1st Defendant up to exchange of witness statements in sum of £70,000 (comprising £50,000 for post-application period and £20,000 for period from commencement to application).