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Article summary

Dispute Resolution analysis: Fraser J granted an appeal against an order for security for costs originally granted by a Master against a counter-claiming defendant. The dispute involved both a claim and a counter-claim which effectively raised identical issues. It was a matter of chance which party had commenced litigation first and thus which party became the claimant. The judge held that the court may, in its discretion, refuse to order security for costs in respect of a claim where the same issues arise in the counterclaim in the same proceedings. It was held that if the security ordered in this case had not been paid, not only would the counter-claim have been struck out but also the defence to the original claim. In all those circumstances the order for security for costs was “wrong” and should be overturned. Colleen Hanley, barrister at 20 Essex St Chambers, considers the case and its implications for...