Kazakhstan Kagazy Plc & Ors v Zhunus (Rev 1)

Kazakhstan Kagazy Plc & Ors v Zhunus (Rev 1)

The court found that both the inability to pay pre-condition and residence pre-condition were satisfied, that enforcement of an English costs order in Kazakhstan would face substantial obstacles or impossibility, and that the justice test was met given the weak merits of the claim and the likelihood of irrecoverable loss to the defendant. Security for costs was ordered in the amount of £1m.

Parties
Claimant: Kazakhstan Kagazy PLC; Defendant: Baglan Zhunus
Jurisdiction
England and Wales
Judgment Date
16 April 2015
Procedural Posture
Commercial / Interlocutory Application for Security for Costs
Outcome
Application for security for costs granted; claimants' February 2015 application refused.
Legal Topics
Security for Costs, Residence Pre Condition, Inability to Pay Pre Condition, Justice Test, Enforcement of Foreign Judgments
Civil Procedure Commercial Law Security for Costs Residence Pre Condition Inability to Pay Pre Condition Justice Test Enforcement of Foreign Judgments

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Parties

Kazakhstan Kagazy PLC

Claimant

Baglan Zhunus

Defendant

Procedural Posture

Commercial / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 Whether the claimants should provide security for costs under CPR 25
  2. 2 Whether the inability to pay pre-condition and residence pre-condition are satisfied
  3. 3 Whether it is just to order security for costs given the circumstances

Ratio Decidendi

The court found that both the inability to pay pre-condition and residence pre-condition were satisfied, that enforcement of an English costs order in Kazakhstan would face substantial obstacles or impossibility, and that the justice test was met given the weak merits of the claim and the likelihood of irrecoverable loss to the defendant. Security for costs was ordered in the amount of £1m.

Court Disposition

Application for security for costs granted; claimants' February 2015 application refused.

Orders

  • Claimants to provide security for costs in the amount of £1m.
  • Claimants' application to reopen hearing and adduce further evidence refused.