Lismore Homes Ltd. (in receivership) v. Bank of Ireland Finance Ltd. [2000] IEHC 35 (24th March, 2000)

Lismore Homes Ltd. (in receivership) v. Bank of Ireland Finance Ltd. [2000] IEHC 35 (24th March, 2000)

The amount of security for costs required under Section 390 of the Companies Act 1963 must approximate the probable costs of the defendant if successful, and in this case, given the complexity, number of parties, and agreement to apportion costs between parallel actions, the court fixes security at £200,000 for each of the First and Second Defendants, representing 50% of the estimated total costs.

Citation
[2000] IEHC 35
Parties
Plaintiff: Plaintiff; Defendant: First Defendant; Defendant: Second Defendant; Defendant: Third Defendant; Defendant: Fourth Defendant; Defendant: Fifth Defendant
Jurisdiction
Ireland
Procedural Posture
Motion / Fixing Amount of Security for Costs
Outcome
Security for costs ordered
Legal Topics
Security for Costs, Costs in Litigation, Limited Company as Plaintiff, Discretion in Awarding Security
Civil Procedure Company Law Security for Costs Costs in Litigation Limited Company as Plaintiff Discretion in Awarding Security

Case Brief

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Parties

Plaintiff

Plaintiff

First Defendant

Defendant

Second Defendant

Defendant

Third Defendant

Defendant

Fourth Defendant

Defendant

Fifth Defendant

Defendant

Procedural Posture

Motion / Fixing Amount of Security for Costs

Legal Issues

  1. 1 What constitutes 'sufficient security' under Section 390 of the Companies Act 1963?
  2. 2 How should the amount of security for costs be determined when multiple defendants and parallel actions are involved?

Ratio Decidendi

The amount of security for costs required under Section 390 of the Companies Act 1963 must approximate the probable costs of the defendant if successful, and in this case, given the complexity, number of parties, and agreement to apportion costs between parallel actions, the court fixes security at £200,000 for each of the First and Second Defendants, representing 50% of the estimated total costs.

Court Disposition

Security for costs ordered

Orders

  • Plaintiff to furnish security for costs to the First Defendant in the sum of £200,000
  • Plaintiff to furnish security for costs to the Second Defendant in the sum of £200,000