Security for costs

An order which requires a party (often the claimant) to pay money into court, or provide a bond or guarantee, as security for their opponent's costs of litigation. It is available for specific situations set out in the Civil Procedure Rules and statute, subject to the court's discretion.

An order for security for costs protects a party (often a defendant) against the risk that they will win at trial and be awarded their costs, but then not be able to enforce a costs order against the other (losing) party, either within the jurisdiction or abroad. The order for security to be given, if complied with, will provide a fund available within England and Wales, against which the party who has obtained the security order can enforce any costs order they may obtain. The claim may be stayed (and so cannot continue) until the security is provided. If the claim is not stayed, there may be other provision for default, such as giving the claimant (or other relevant party) a reasonable time within which to provide the security, and the other party liberty to apply to the court in the event of default. This enables the court to put the claimant to its election and then, if appropriate, to dismiss the case.

For further guidance, see CPR 25 and Practice note, Security for costs: an overview and related notes.