Dumrul v Standard Chartered Bank [2010] EWHC 2625 (Comm) (20 October 2010)

Dumrul v Standard Chartered Bank [2010] EWHC 2625 (Comm) (20 October 2010)

Security for costs should only be ordered if the Bank undertakes to consent to dismissal of its counterclaim if the claimant's claim is dismissed for failure to provide security, and only to the extent of £25,000 reflecting the extra burden of enforcement in Turkey, as there are no substantial obstacles to enforcement and the claim and counterclaim are co-extensive.

Citation
[2010] EWHC 2625 (Comm)
Parties
Claimant: Mr Ali Burak Dumrul; Defendant: Standard Chartered Bank
Jurisdiction
England and Wales
Judgment Date
20 October 2010
Procedural Posture
Application for Security for Costs / Interlocutory Application Before Trial
Outcome
Application for security for costs granted only if the Bank undertakes to consent to dismissal of its counterclaim if the claimant's claim is dismissed for failure to provide security; maximum security set at £25,000.
Legal Topics
Security for Costs, Enforcement of Foreign Judgments, Counterclaims, Jurisdictional Issues, Costs Orders
Civil Procedure Banking Law Security for Costs Enforcement of Foreign Judgments Counterclaims Jurisdictional Issues Costs Orders

Case Brief

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Parties

Mr Ali Burak Dumrul

Claimant

Standard Chartered Bank

Defendant

Procedural Posture

Application for Security for Costs / Interlocutory Application Before Trial

Legal Issues

  1. 1 Whether security for costs should be ordered where claim and counterclaim are co-extensive
  2. 2 Whether obstacles or burdens to enforcement of an English costs order in Turkey justify security for costs

Ratio Decidendi

Security for costs should only be ordered if the Bank undertakes to consent to dismissal of its counterclaim if the claimant's claim is dismissed for failure to provide security, and only to the extent of £25,000 reflecting the extra burden of enforcement in Turkey, as there are no substantial obstacles to enforcement and the claim and counterclaim are co-extensive.

Court Disposition

Application for security for costs granted only if the Bank undertakes to consent to dismissal of its counterclaim if the claimant's claim is dismissed for failure to provide security; maximum security set at £25,000.

Orders

  • Security for costs limited to £25,000 reflecting extra enforcement burden in Turkey.
  • Order only to be made if Bank undertakes to consent to dismissal of counterclaim if claimant's claim is dismissed for failure to provide security.