Dimension Data Advanced Infrastructure Ltd v Berkeley Homes Plc & Ors [2020] EWHC 1328 (TCC) (30 March 2020)

Dimension Data Advanced Infrastructure Ltd v Berkeley Homes Plc & Ors [2020] EWHC 1328 (TCC) (30 March 2020)

Security for costs should be ordered against the claimant, an insolvent company, as the defendants would otherwise face a claim without protection for their costs; the existence of a bond and parent company guarantee does not alter this position; if security is not provided, the claim will be struck out rather than stayed.

Citation
[2020] EWHC 1328 (TCC)
Parties
Claimant/respondent: Dimension Data Advanced Infrastructure Ltd; Defendant/applicant: Berkeley Homes PLC; Defendant/applicant: St Edward Homes Ltd; Defendant/applicant: Berkeley Homes (Urban Renaissance) Ltd
Jurisdiction
England and Wales
Judgment Date
30 March 2020
Procedural Posture
Security for Costs Application / Interlocutory Application Before Trial
Outcome
Application for security for costs granted
Legal Topics
Security for Costs, Insolvency of Claimant, Construction Contract Disputes, Parent Company Guarantees, Performance Bonds
Civil Procedure Construction Law Security for Costs Insolvency of Claimant Construction Contract Disputes Parent Company Guarantees Performance Bonds

Case Brief

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Parties

Dimension Data Advanced Infrastructure Ltd

Claimant/respondent

Berkeley Homes PLC

Defendant/applicant

St Edward Homes Ltd

Defendant/applicant

Berkeley Homes (Urban Renaissance) Ltd

Defendant/applicant

Procedural Posture

Security for Costs Application / Interlocutory Application Before Trial

Legal Issues

  1. 1 Whether security for costs should be ordered against an insolvent claimant company
  2. 2 Whether the existence of a parent company guarantee and performance bond affects the appropriateness of a security for costs order
  3. 3 Whether a stay or strike out is the appropriate consequence for non-provision of security

Ratio Decidendi

Security for costs should be ordered against the claimant, an insolvent company, as the defendants would otherwise face a claim without protection for their costs; the existence of a bond and parent company guarantee does not alter this position; if security is not provided, the claim will be struck out rather than stayed.

Court Disposition

Application for security for costs granted

Orders

  • Claimant to provide security for costs in tranches as agreed between the parties; if security is not provided, the claim will be struck out.