Legal Updates

Only in rare cases a company filing a claim will not be required to deposit a security for defendant’s expenses

August 18, 2019
Print

A manufacturing company discovered a defect in the products at the end of the manufacturing process and contended that this could only be caused by a defective raw material and such raw material was purchased from only one supplier.
The Court obligated the company to deposit a security for the supplier’s expenses. The default is that when a company files a claim, it will be required to deposit a security for the defendant's expenses, unless it has shown financial ability to pay the expenses or special circumstances that justify the non-obligation to deposit such security, such as very high chances of winning the claim. In this case, the company was unable to show such circumstances and was therefore ordered to deposit a security.