Costs
Virgo Marine and another company v Reed Smith LLP and another company [2025] EWHC 1157 (Comm)
The Commercial Court ruled on the defendant law firm’s (RSUK’s) application for security for costs, concerning the claimants’ claim against it, arising out of a dispute concerning the purchase an oil tanker. The claim alleged: breach of contract, duty of care and fiduciary duty in giving the original instruction to a third party (Barclays) to freeze sums in escrow; and breach of contract in failing to pay the claimants the balance. The court held that it would not be just to make the order sought, despite the claimants being foreign companies and there being reason to believe they would be unable to pay RSUK’s costs, if ordered to do so. The court held that the argument that Barclays would resist making a payment from the balance to RSUK for the purposes of satisfying a costs order of the present court in RSUK’s favour appeared thin, and that its ability to resist such a payment was particularly so. The court considered whether the $11m balance
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