Superwood Holdings plc v. Sun Alliance & London Insurance plc t/a as Sun Alliance Insurance Group [2002] IESC 22 (12 April 2002)

Superwood Holdings plc v. Sun Alliance & London Insurance plc t/a as Sun Alliance Insurance Group [2002] IESC 22 (12 April 2002)

Where a corporate plaintiff is unable to pay the costs of a successful defendant/respondent, and no special circumstances are established, the court should exercise its discretion to order security for costs to protect defendants from exposure to unrecoverable costs in protracted litigation.

Citation
[2002] IESC 22
Parties
Plaintiff/appellant: Superwood Limited and Superwood Exports Limited; Defendant/respondent: First, Second and Third Named Defendants (insurance companies)
Jurisdiction
Ireland
Judgment Date
12 April 2002
Procedural Posture
Application for Security for Costs in Appeal / Supreme Court, Post Judgment, Pending Appeal
Outcome
Application granted; proceedings stayed pending security for costs.
Legal Topics
Security for Costs, Appeals, Corporate Plaintiffs, Costs Liability
Civil Procedure Company Law Insurance Law Security for Costs Appeals Corporate Plaintiffs Costs Liability

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Parties

Superwood Limited and Superwood Exports Limited

Plaintiff/appellant

First, Second and Third Named Defendants (insurance companies)

Defendant/respondent

Procedural Posture

Application for Security for Costs in Appeal / Supreme Court, Post Judgment, Pending Appeal

Legal Issues

  1. 1 Whether security for costs should be ordered against corporate plaintiffs in an appeal where inability to pay is established
  2. 2 Whether special circumstances exist to justify refusal of security for costs

Ratio Decidendi

Where a corporate plaintiff is unable to pay the costs of a successful defendant/respondent, and no special circumstances are established, the court should exercise its discretion to order security for costs to protect defendants from exposure to unrecoverable costs in protracted litigation.

Court Disposition

Application granted; proceedings stayed pending security for costs.

Orders

  • Further proceedings in the appeal are stayed pending the giving of security in such sum as may be determined by the Master of the High Court.