Absolute Living Developments Ltd v DS7 Ltd & Ors

Absolute Living Developments Ltd v DS7 Ltd & Ors

Security for costs was refused because the Claimant, an insolvent company in liquidation, had no means to provide security and no reasonable prospect of raising funds from third parties or creditors, so an order would stifle a bona fide and genuine claim.

Parties
Claimant: Absolute Living Developments Limited (in liquidation) (Acting by its Liquidator, Louise Mary Brittain); Defendants: DS7 Limited and others
Jurisdiction
England and Wales
Judgment Date
24 May 2018
Procedural Posture
Civil / Interlocutory Application for Security for Costs
Outcome
Application for security for costs dismissed.
Legal Topics
Security for Costs, Liquidation, Stifling Claims, Funding Litigation
Civil Procedure Insolvency Security for Costs Liquidation Stifling Claims Funding Litigation

Case Brief

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Parties

Absolute Living Developments Limited (in liquidation) (Acting by its Liquidator, Louise Mary Brittain)

Claimant

DS7 Limited and others

Defendants

Procedural Posture

Civil / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 Whether security for costs should be ordered against an insolvent claimant in liquidation
  2. 2 Whether such an order would stifle a bona fide claim

Ratio Decidendi

Security for costs was refused because the Claimant, an insolvent company in liquidation, had no means to provide security and no reasonable prospect of raising funds from third parties or creditors, so an order would stifle a bona fide and genuine claim.

Court Disposition

Application for security for costs dismissed.

Orders

  • No order for security for costs.
  • Claimant may continue to prosecute its claim.