Bend Weld Engineering SDN BHD v FMC Technologies Ltd [2023] EWHC 2782 (TCC) (07 November 2023)

Bend Weld Engineering SDN BHD v FMC Technologies Ltd [2023] EWHC 2782 (TCC) (07 November 2023)

Security for costs is ordered where there is reason to believe the claimant cannot pay the defendant's costs, and where the counterclaim is defensive and an undertaking is given to dismiss it if the claim is dismissed for failure to provide security. Pre-action costs are excluded as they are not incurred solely in defence of the proceedings.

Citation
[2023] EWHC 2782 (TCC)
Parties
Claimant: Bend Weld Engineering Sdn. Bhd; Defendant: FMC Technologies Limited
Jurisdiction
England and Wales
Judgment Date
07 November 2023
Procedural Posture
Security for Costs Application / Interlocutory
Outcome
Application granted in part
Legal Topics
Security for Costs, Counterclaim, Costs Budgeting, Jurisdictional Issues
Civil Procedure Commercial Law Security for Costs Counterclaim Costs Budgeting Jurisdictional Issues

Case Brief

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Parties

Bend Weld Engineering Sdn. Bhd

Claimant

FMC Technologies Limited

Defendant

Procedural Posture

Security for Costs Application / Interlocutory

Legal Issues

  1. 1 Whether the defendant is entitled to security for costs under CPR 25.13(2)(c)
  2. 2 Whether security should be ordered in light of the defendant's intended counterclaim
  3. 3 Whether pre-action costs should be included in the security for costs order

Ratio Decidendi

Security for costs is ordered where there is reason to believe the claimant cannot pay the defendant's costs, and where the counterclaim is defensive and an undertaking is given to dismiss it if the claim is dismissed for failure to provide security. Pre-action costs are excluded as they are not incurred solely in defence of the proceedings.

Court Disposition

Application granted in part

Orders

  • BWE to provide security for FMC's costs up to the conclusion of the CMC in the sum of £70,800.
  • No order for security in respect of FMC's pre-action costs.