Petromec Inc v Petrobras

Petromec is in substance the claimant and must provide security for Petrobras’ costs. There is no evidence that Petromec cannot comply with a security order or that such an order would stifle its claim. The quantum of costs claimed by Petrobras is reasonable. The merits of Petromec’s claim do not justify refusing security, and the risk of stalemate or unfairness is not substantiated.

Parties: Claimant: Petromec Inc.; Defendant: Petrobras
Jurisdiction: England and Wales
Judgment Date: 11 May 2007
Procedural Posture: Commercial Court Application / Application for Security for Costs
Outcome: Application for security for costs granted
Legal Topics: Security for Costs, Setoff, Stay of Execution, Costs Assessment

Civil Procedure Commercial Law Security for Costs Setoff Stay of Execution Costs Assessment

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 3 Authorities cited 2 Party arguments 2 Amounts and remedies 6

Parties

Petromec Inc.

Claimant

Petrobras

Defendant

Procedural Posture

Commercial Court Application / Application for Security for Costs

Legal Issues

1 Whether Petromec should provide security for Petrobras' costs in defending the extra costs claim
2 Whether Petromec is in substance a claimant or defendant for the purposes of security for costs
3 Whether ordering security would create a procedural stalemate or unfairness

Ratio Decidendi

Court Disposition

Application for security for costs granted

Orders

Petromec to provide security for Petrobras’ costs in the sum of £178,691.16 for costs up to 11 April 2007.
Petrobras awarded £24,500 as costs of the application, assessed summarily.