Janna Purdie takes a look at security for costs from a claimant’s perspective.
Security for costs
The Commercial Court has recently provided guidance for practitioners seeking security for costs against a defendant.
Facts of the case
(Ref, Jones v Environcom [2008] All ER (D) 115 (Jan))
The claimant insurers provided cover for a Scottish recycling facility owned by the defendant. When that facility burnt down the claimants considered that they had a right to avoid the policy. The insurers issued proceedings in England for a declaration that they had validly avoided the insurance policies due to non disclosure or alternatively that they were entitled to damages. The defendants contended there was no requirement for disclosure and therefore the insurers were not entitled to avoid the policies. The defendant also counterclaimed that they were entitled to an indemnity for the losses suffered as a consequence of the insurers’ actions and a declaration they were entitled to be indemnified in respect of such losses or that the insurers should pay them damages for such losses.
The claimants