Michael Phillips Architects Ltd v Riklin & Anor

Michael Phillips Architects Ltd v Riklin & Anor

The ATE insurance policy obtained by the claimant does not provide real security for the defendants’ costs due to extensive cancellation and avoidance provisions, and the claimant company is unable to pay the defendants’ costs if ordered to do so; therefore, the court has jurisdiction and exercises discretion to order security for costs in the sum of £30,000.

Parties
Claimant: Michael Phillips Architects Limited; Defendant: Cornel Clark Riklin; Defendant: Susan Oglesby Riklin
Jurisdiction
England and Wales
Judgment Date
23 April 2010
Procedural Posture
Civil / Interlocutory Application for Security for Costs
Outcome
Security for costs ordered against the claimant.
Legal Topics
Security for Costs, After the Event Insurance, Conditional Fee Agreements
Civil Procedure Security for Costs After the Event Insurance Conditional Fee Agreements

Case Brief

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Parties

Michael Phillips Architects Limited

Claimant

Cornel Clark Riklin

Defendant

Susan Oglesby Riklin

Defendant

Procedural Posture

Civil / Interlocutory Application for Security for Costs

Legal Issues

  1. 1 Whether ATE insurance provides adequate security for costs
  2. 2 Whether the claimant company is unable to pay the defendants’ costs if ordered to do so
  3. 3 Whether security for costs would stifle the claimant’s claim

Ratio Decidendi

The ATE insurance policy obtained by the claimant does not provide real security for the defendants’ costs due to extensive cancellation and avoidance provisions, and the claimant company is unable to pay the defendants’ costs if ordered to do so; therefore, the court has jurisdiction and exercises discretion to order security for costs in the sum of £30,000.

Court Disposition

Security for costs ordered against the claimant.

Orders

  • Claimant to provide security for costs in the sum of £30,000.