Joseph Braddell & Son Ltd v Zurich Insurance Public Liability Company [2023] NIKB 56 (20 April 2023)

Joseph Braddell & Son Ltd v Zurich Insurance Public Liability Company [2023] NIKB 56 (20 April 2023)

Security for costs was refused because ordering it would stifle a genuine claim by a small company against a large insurer, and the plaintiff had reasonable prospects of success. The prejudice to the plaintiff outweighed the prejudice to the defendant.

Citation
[2023] NIKB 56
Parties
Plaintiff/respondent: Joseph Braddell & Son Ltd; Defendant/appellant: Zurich Insurance Public Liability Company
Jurisdiction
Northern Ireland
Judgment Date
20 April 2023
Procedural Posture
Appeal / Interlocutory Application for Security for Costs
Outcome
Appeal dismissed
Legal Topics
Security for Costs, Corporate Insolvency, Insurance Indemnity, Moral Hazard, Business Interruption Claims

Case Brief

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Parties

Joseph Braddell & Son Ltd

Plaintiff/respondent

Zurich Insurance Public Liability Company

Defendant/appellant

Procedural Posture

Appeal / Interlocutory Application for Security for Costs

  1. 1 Whether security for costs should be ordered against a corporate plaintiff
  2. 2 Whether plaintiff's inability to pay security was caused by defendant's conduct
  3. 3 Plaintiff's prospects of success in insurance claim

Ratio Decidendi

Security for costs was refused because ordering it would stifle a genuine claim by a small company against a large insurer, and the plaintiff had reasonable prospects of success. The prejudice to the plaintiff outweighed the prejudice to the defendant.

Court Disposition

Appeal dismissed

Orders

  • No order for security for costs
  • Defendant condemned in costs of the application