Nicholas G Jones v Environcom Limited & Anor

Nicholas G Jones v Environcom Limited & Anor

Security for costs of the counterclaim may be ordered in the full amount, including costs common to both claim and counterclaim, where the counterclaim has independent vitality and arises from the same facts as the claim; the court’s discretion is not pre-empted and must be exercised considering all circumstances.

Parties
Claimant: Nicholas G Jones; Defendant: Environcom Limited; Defendant: Environcom England Limited
Jurisdiction
England and Wales
Judgment Date
16 January 2009
Procedural Posture
Commercial Court Preliminary Issues / Ruling on Preliminary Issues Regarding Security for Costs of Counterclaim
Outcome
Preliminary issues determined in favour of Insurers.
Legal Topics
Security for Costs, Counterclaims, Non Disclosure, Indemnity, Discretionary Orders
Insurance Law Civil Procedure Security for Costs Counterclaims Non Disclosure Indemnity Discretionary Orders

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Parties

Nicholas G Jones

Claimant

Environcom Limited

Defendant

Environcom England Limited

Defendant

Procedural Posture

Commercial Court Preliminary Issues / Ruling on Preliminary Issues Regarding Security for Costs of Counterclaim

Legal Issues

  1. 1 Whether the Defendants’ counterclaim has independent vitality for purposes of security for costs
  2. 2 Whether costs of the counterclaim are confined to those exclusively referable to the counterclaim or include common issues

Ratio Decidendi

Security for costs of the counterclaim may be ordered in the full amount, including costs common to both claim and counterclaim, where the counterclaim has independent vitality and arises from the same facts as the claim; the court’s discretion is not pre-empted and must be exercised considering all circumstances.

Court Disposition

Preliminary issues determined in favour of Insurers.

Orders

  • Security for costs may be awarded to Insurers in the full amount of their costs of the counterclaim.
  • Further argument on costs and consequential orders to be heard after formal hand down.