87 The form of security Should the court or tribunal deem it appropriate to award security for costs, it has a wide discretion in deciding the amount and type of security. Security can take the form of a guarantee from a parent company or bank, or payment into the court or arbitral institution. An order for security of costs will usually require the claimant to provide the security within a reasonable time and can be ordered to be provided in stages as the proceedings progress. What happens if an order for security for costs is not complied with? Should an order for security not be complied with, the claim can be stayed (i.e., suspended) pending compliance. The claim may also be struck out or dismissed if security from the claimant is not provided. The bottom line An application for security for costs is an important step to be considered in litigation or arbitration proceedings. An order for security for costs may discourage the claimant from proceeding with the claim and can provide defendants with protection from being left out of pocket. At Asserson, we have significant experience assisting clients to obtain orders for security for costs. Asserson is an English law firm with offices in Tel Aviv, London and Manchester. Our team comprises 15 partners and over 75 lawyers who have worked at the highest levels of world class law firms and global companies.
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