HT-2022-000022 - [2025] EWHC 1238 (TCC)

This application is brought by the Defendant, Accor HotelServices UK Limited (‘Accor’) for further security for its costs, to be paid into Court by the Claimant, Lloyds Developments Limited (‘Lloyds’). The claim relates to agreements between Lloyds and Accor for the construction and management of a 290 bedroom hotel at 236-246 Clyde Street, Glasgow (“the Hotel”). This is the latest in a long line of interlocutory skirmishes which have played out before the Court. A summary of allegations and counter-allegations, and a potted history of the procedural background is set out in my recent judgment regarding a number of unsuccessful strike out applications launched by Accor reported at [2025] EWHC 464 (TCC). It is not repeated here.

Lloyds is in administration. Lloyds has already paid £900,000, pursuant to an order for security made by Mrs. Justice O’Farrell in July 2022, and a further £425,000 pursuant to an increase ordered by Mrs. Justice Jefford in May 2024. Presently, pursuant to these Orders, a further £600,000 remains to be paid six weeks prior to trial, set for November 2026. Furthermore, in order to resolve a dispute regarding Lloyds’s latest amendment, by a Consent Order dated 2 May 2025, Lloyds agreed to pay in a further £75,000 by way of security for the amendments (albeit subject to the right to repayment if, pursuant to this application, an alternative form of security to payment into Court is approved). The total security paid or ordered to be paid prior to trial is, therefore, £2,000,000. Accor seeks a further £1,162,336. Lloyds accepts that it should provide a further £617,336. It also contends it should be permitted to do so by the provision of an ATE (‘After the Event’) insurance policy instead of a payment into Court.