1999/141 - L'Eau des Iles v A E Smith [1999] UR 141 (6 August 1999)

1999/141 - L'Eau des Iles v A E Smith [1999] UR 141 (6 August 1999)

The order for security for costs would stifle the plaintiff's claim, as Mr. Baker could not realistically raise the required sum without losing his family home. The balancing exercise required by law was not properly performed by the Greffier Substitute. The appeal is allowed and the order for security is quashed.

Citation
[1999] UR 141
Parties
Plaintiff: L’Eau des Iles Jersey Ltd; Defendant: A. E. Smith & Sons Ltd
Jurisdiction
Jersey
Judgment Date
06 August 1999
Procedural Posture
Civil / Appeal Against Interlocutory Order (security for Costs)
Outcome
appeal allowed; order for security for costs quashed
Legal Topics
Security for Costs, Company Law, Access to Justice, Balancing Exercise in Interlocutory Applications
Civil Procedure Security for Costs Company Law Access to Justice Balancing Exercise in Interlocutory Applications

Case Brief

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Parties

L’Eau des Iles Jersey Ltd

Plaintiff

A. E. Smith & Sons Ltd

Defendant

Procedural Posture

Civil / Appeal Against Interlocutory Order (security for Costs)

Legal Issues

  1. 1 Whether the order for security for costs against an impecunious plaintiff company was oppressive and would stifle a genuine claim
  2. 2 Whether the Greffier Substitute correctly applied the legal principles regarding security for costs

Ratio Decidendi

The order for security for costs would stifle the plaintiff's claim, as Mr. Baker could not realistically raise the required sum without losing his family home. The balancing exercise required by law was not properly performed by the Greffier Substitute. The appeal is allowed and the order for security is quashed.

Court Disposition

appeal allowed; order for security for costs quashed

Orders

  • Order of the Greffier Substitute dated 4 March 1999 is quashed
  • Plaintiff's action may proceed