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

Security for costs is governed by CPR Part 25.26 to 25.29. The conditions are set out at CPR 25.27:

“25.27.

The court may make an order for security for costs if—

(a)

it is satisfied, having regard to all the circumstances of the case, that it is just to make such an order; and

(b)

either an enactment permits the court to require security for costs, or one or more of the following conditions apply—

(i)

the claimant is resident out of the jurisdiction;

(ii)

the claimant is a company or other body (whether incorporated inside or outside England and Wales) and there is reason to believe that it will be unable to pay the defendant’s costs if ordered to do so;

…”

Subject to the question of the ATE insurance policy, it is accepted by Lloyds that (ii) would apply in circumstances where Lloyds is in administration. Lloyds is also resident outside the jurisdiction, registered as it is in Guernsey. The Court then has a discretion to award security if it satisfied in the circumstances of the case that it is just to make such an Order.