Greenback Investments Ltd v Lambert Smith Hampton Group Ltd [2010] NIQB 33 (5 March 2010)

Greenback Investments Ltd v Lambert Smith Hampton Group Ltd [2010] NIQB 33 (5 March 2010)

Security for costs is appropriate where there is credible evidence the plaintiff company cannot pay, but the amount must be proportionate so as not to stifle a bona fide claim or impede access to justice. £30,000 is proportionate security in this case.

Citation
[2010] NIQB 33
Parties
Plaintiff: GWM Developments Limited; Plaintiff: Greenback Investments Limited; Defendant: Lambert Smith Hampton Group Limited
Jurisdiction
Northern Ireland
Judgment Date
05 March 2010
Procedural Posture
Commercial Action / Application for Security for Costs
Outcome
Application granted in part
Legal Topics
Security for Costs, Company Inability to Pay Costs, Access to Court, Proportionality of Security
Civil Procedure Commercial Law Security for Costs Company Inability to Pay Costs Access to Court Proportionality of Security

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Parties

GWM Developments Limited

Plaintiff

Greenback Investments Limited

Plaintiff

Lambert Smith Hampton Group Limited

Defendant

Procedural Posture

Commercial Action / Application for Security for Costs

Legal Issues

  1. 1 Whether plaintiffs should be ordered to provide security for defendant's costs under Article 674 of the Companies (Northern Ireland) Order 1986
  2. 2 Whether the amount of security sought is proportionate and does not impede access to justice

Ratio Decidendi

Security for costs is appropriate where there is credible evidence the plaintiff company cannot pay, but the amount must be proportionate so as not to stifle a bona fide claim or impede access to justice. £30,000 is proportionate security in this case.

Court Disposition

Application granted in part

Orders

  • Plaintiffs to provide security for costs in the sum of £30,000
  • Action stayed until security is given