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Practice – Pre-trial or post-judgment relief. The Court of Appeal, Civil Division, allowed an appeal against the judge's refusal to make an order for security for costs. The judge had erred in finding that there was no reason to believe that the claimant would be unable to pay if it lost. If there was a practice of the Commercial Court that security for costs would often be granted against a foreign company who was not obliged to publish accounts, had no discernible assets and declined to reveal anything about its financial position, that practice was a sound one. The court gave guidance on the approach to be taken in such applications, in particular in CPR Pt 20 proceedings and where there was an agreed, and court approved, costs budget regarding costs already incurred.
Practice – Pre-trial or post-judgment relief. The Court of Appeal, Civil Division, allowed an appeal against the judge's refusal to make an order for security for costs. The judge had erred in finding that there was no reason to believe that the claimant would be unable to pay if it lost. If there was a practice of the Commercial Court that security for costs would often be granted against a foreign company who was not obliged to publish accounts, had no discernible assets and declined to reveal anything about its financial position, that practice was a sound one. The court gave guidance on the approach to be taken in such applications, in particular in CPR Pt 20 proceedings and where there was an agreed, and court approved, costs budget regarding costs already incurred.
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