It is important for a defendant to consider the ability of a claimant company to fund litigation in which they are involved. It is useful in these circumstances for a defendant to consider asking the court to order a claimant to pay funds into court by way of security for the defendant’s costs, primarily as protection if the claimant is unable to satisfy a costs order following a failure of the case. The courts have held that security for costs may also be granted if a counterclaiming defendant is unable to pay the costs of the claimant. The granting of an application for security for costs is discretionary and the judge will consider the justness of the circumstances in each case. Since such applications are regarded as serious matters and courts need to be persuaded that they are essential, sworn financial evidence is often needed.
When we are instructed to provide a professional opinion as to the financial standing of a claimant or a counterclaiming defendant, we use our expertise to obtain current, reliable and relevant financial information. Since an application for security for costs is unlikely to be successful unless it is both reasonable and realistic, our objectivity and impartiality are important attributes given our primary objective in assisting the court.