Pender v GGH (Jersey) Limited and Ors [2022] JRC 106 (11 May 2022)

Pender v GGH (Jersey) Limited and Ors [2022] JRC 106 (11 May 2022)

Security for costs is justified in this complex, high-value shareholder dispute due to plaintiff's refusal to disclose assets, significant sums claimed, and the necessity for defendants to have access to funds to recoup costs; however, the quantum sought by defendants is excessive and must be proportionate to costs likely to be necessarily incurred.

Citation
[2022] JRC 106
Parties
Plaintiff: Pender; First Defendant: GHH (Jersey) Limited; Second Defendant: Second Defendant; Third Defendant: Third Defendant
Jurisdiction
Jersey
Judgment Date
11 May 2022
Procedural Posture
Application for Security for Costs / Interlocutory Judgment
Outcome
Application granted in part
Legal Topics
Security for Costs, Unfair Prejudice, Shareholder Disputes, Costs Quantification
Company Law Civil Procedure Security for Costs Unfair Prejudice Shareholder Disputes Costs Quantification

Case Brief

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Parties

Pender

Plaintiff

GHH (Jersey) Limited

First Defendant

Second Defendant

Second Defendant

Third Defendant

Third Defendant

Procedural Posture

Application for Security for Costs / Interlocutory Judgment

Legal Issues

  1. 1 Whether security for costs should be ordered against a UK resident plaintiff
  2. 2 Quantum of security for costs to be provided
  3. 3 Justification for security given plaintiff's asset disclosure and complexity of litigation

Ratio Decidendi

Security for costs is justified in this complex, high-value shareholder dispute due to plaintiff's refusal to disclose assets, significant sums claimed, and the necessity for defendants to have access to funds to recoup costs; however, the quantum sought by defendants is excessive and must be proportionate to costs likely to be necessarily incurred.

Court Disposition

Application granted in part

Orders

  • Plaintiff to provide additional security for costs of £750,000 via after the event insurer, total security to be £1.25 million.