Judge: Peter MacDonald-Eggers QC
Citation:  EWHC 3471 (Comm)
In an application for security of costs a similar level of detail is required as for costs budgeting or summary assessment. Without such detail the court had to take a conservative approach.
The Defendant sought an Order for security for costs in the sum of £2.7million, being 80 percent of their incurred and estimated future costs in relation to the continuation of a Worldwide Freezing Order. The Defendant supplied a breakdown of his costs in respect of solicitors, counsel, Russian lawyers and experts. The Court held that an applicant for security had to provide a sufficiently detailed breakdown to satisfy the Court that the security ordered would avoid unnecessary prejudice to the Respondent. The assessment of quantum was hampered by the Defendant’s inadequately detailed breakdown – what was required was a breakdown similar to that required for costs budgeting or summary assessment. Given that the amount claimed as security was based on a disproportionately high total figure, the Court applied a 30 percent discount to reach a starting point for calculating quantum and a further 25 percent discount to reflect the real possibility that if the Freezing Order were discharged, the Claimant would be liable for costs on the indemnity basis. An Order was made in the sum of £1.5million.