Legal Updates

A company filing a claim will usually be ordered to deposit a guarantee for defendant’s expenses

August 22, 2016
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A company that has been sued by another company demanded claimant to deposit a guarantee for its expenses.

The Court held that in principle a company filing a claim will be obligated to deposit a guarantee for the expenses of the defendant. Nevertheless, the Court may order the company to pay adequate security deposit defendant's costs but the Court may also refuse to do so if the plaintiff has shown the ability to pay such expenses or because of any other reason. Because in this case it was not proven that the company will not be able to bear the defendant's costs if it wins, the Court rejected the motion.