Lord Ltd v HSBC Bank Plc

Lord Ltd v HSBC Bank Plc

The Court found reason to believe the Claimant 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 the Claimant and its backers could not procure the required security.

Parties
Claimant: Lord Ltd; Defendant: HSBC Bank PLC
Jurisdiction
England and Wales
Judgment Date
18 April 2018
Procedural Posture
Civil / Interlocutory Application for Security for Costs and Extension of Time to Serve Defence
Outcome
Application for security for costs allowed; extension of time for Defence allowed.
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

Case Brief

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Parties

Lord Ltd

Claimant

HSBC Bank PLC

Defendant

Procedural Posture

Civil / Interlocutory Application for Security for Costs and Extension of Time to Serve 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 the Claimant 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 the Claimant and its backers could not procure the required security.

Court Disposition

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

Orders

  • Claimant to provide security for costs in the sum of £27,500.
  • Defendant granted extension of time to serve Defence to 14 days after provision of security.