Eagle Ltd v Falcon Ltd [2012] EWHC 2261 (TCC) (Hearing 17 July 2012)

Eagle Ltd v Falcon Ltd [2012] EWHC 2261 (TCC) (Hearing 17 July 2012)

There is reason to believe Eagle Ltd will be unable to pay Falcon Ltd's costs if ordered to do so, satisfying CPR 25.13(2)(c). The court's discretion is exercised in favour of ordering security for costs, as it is just and proportionate in the circumstances. The amount of security is set at £295,000, to be provided by payment into court or bank guarantee, as a parent company guarantee is insufficient given the financial uncertainty of the group.

Citation
[2012] EWHC 2261 (TCC)
Parties
Claimant: Eagle Ltd; Defendant: Falcon Ltd (formally Hawk Ltd)
Jurisdiction
England and Wales
Procedural Posture
Application for Security for Costs / Interlocutory Application Prior to Disclosure
Outcome
Application for security for costs granted in part
Legal Topics
Security for Costs, Impecuniosity, Disclosure, Costs Management
Civil Procedure Commercial Law Security for Costs Impecuniosity Disclosure Costs Management

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Eagle Ltd

Claimant

Falcon Ltd (formally Hawk Ltd)

Defendant

Procedural Posture

Application for Security for Costs / Interlocutory Application Prior to Disclosure

Legal Issues

  1. 1 Whether the defendant is entitled to security for costs under CPR 25.12 and 25.13(2)(c) against the claimant due to the claimant's impecuniosity
  2. 2 Whether the amount of security sought is just and proportionate
  3. 3 Whether the manner of security should be by payment into court or by guarantee

Ratio Decidendi

There is reason to believe Eagle Ltd will be unable to pay Falcon Ltd's costs if ordered to do so, satisfying CPR 25.13(2)(c). The court's discretion is exercised in favour of ordering security for costs, as it is just and proportionate in the circumstances. The amount of security is set at £295,000, to be provided by payment into court or bank guarantee, as a parent company guarantee is insufficient given the financial uncertainty of the group.

Court Disposition

Application for security for costs granted in part

Orders

  • Eagle Ltd to provide security for Falcon Ltd's costs in the sum of £295,000 by payment into court or by bank guarantee within 28 days
  • No order for security by parent company guarantee