Legal Updates

‎‎‎‎‎‎‎‎‎‎A claimant company will need to deposit security for costs unless it proves financial robustness

June 22, 2017
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A company filed a claim for payment for consulting services.  The defendant argued that the company has no business activity and should thus be ordered to deposit a security for costs.

The Court repeated the case law under which in principal a claimant company will need to deposit security for costs of the defendant unless the company was able to show at it can pay the costs if the defendant wins.  If the company cannot show this, the Court will review whether the company showed that there are special circumstances under which no security should be deposited.  In this case the company did not prove financial robustness and was thus ordered to deposit security for costs.