Legal Updates

A company that is sued and files a counter-claim will be required to deposit security for costs unless it can show financial robustness and liquidity

November 28, 2016

A group of defendants filed a counterclaim against the claimant.  The claimant demanded that they deposit a security for her costs.

The Court held that when the claimant, including a counter-claimant, is a company with limited liability of the shareholders the general rule is that the company will deposit a security for costs.  A company wishing to avoid this need to show, inter alia, financial robustness and liquidity.  In this case this was not proven and thus the counter-claimants were order to deposit security for costs