Lord Ltd v HSBC Bank Plc [2018] EWHC 860 (Comm) (18 April 2018)

Lord Ltd v HSBC Bank Plc [2018] EWHC 860 (Comm) (18 April 2018)

The court found reason to believe Lord Ltd would be unable to pay the Bank's costs if ordered, based on its balance sheet and lack of liquid assets, and determined it was just to order security for costs. The court was not satisfied that ordering security would stifle the claim, as there was insufficient evidence...

Source-derived case information.

Citation
[2018] EWHC 860 (Comm)
Parties
Claimant: Lord Ltd; Defendant: HSBC Bank PLC
Jurisdiction
England and Wales
Judgment Date
18 April 2018
Procedural Posture
Commercial Court (qbd) Claim / Interlocutory Application for Security for Costs and Extension of Time for Defence
Outcome
Application for security for costs granted; extension of time for Defence granted.
Legal Topics
Security for Costs, Extension of Time, Company Solvency, Litigation Funding
Civil Procedure Commercial Law Security for Costs Extension of Time Company Solvency Litigation Funding

Source-derived case record

Summary, issues, holding and outcome

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Parties

Lord Ltd

Claimant

HSBC Bank PLC

Defendant

Procedural Posture

Commercial Court (qbd) Claim / Interlocutory Application for Security for Costs and Extension of Time for Defence

Legal Issues

  1. 1 Whether the claimant is unable to pay the defendant's costs if ordered to do so
  2. 2 Whether it is just to order security for costs at this stage
  3. 3 Whether ordering security would stifle the claim

Ratio Decidendi

The court found reason to believe Lord Ltd would be unable to pay the Bank's costs if ordered, based on its balance sheet and lack of liquid assets, and determined it was just to order security for costs. The court was not satisfied that ordering security would stifle the claim, as there was insufficient evidence that Lord Ltd or its backers could not procure security from their own or related resources.

Court Disposition

Application for security for costs granted; extension of time for Defence granted.

Orders

  • Claimant to provide security for costs in the sum of £27,500 by traditional secure means.
  • Defendant's time to serve Defence extended to 14 days after provision of security.