Dispute Resolution 2025/26 Update for July 2026 Exam

Chapter 10 Costs and Funding

COSTS ORDERS

Security for Costs Orders

The grounds for making a successful application for security for costs have expanded (see bold text below)

In order to be successful in an application for security for costs, the applicant must prove that:

· it is just in the circumstances for the court to make an order;

· one of the following conditions applies:

– the claimant is resident outside of England and Wales;

– the claimant is a company and there is reason to believe that it will be unable to pay the defendant’s costs if ordered to do so;

– the claimant has changed their address since the claim was commenced with a view to evading the consequences of the litigation;

– the claimant failed to give their address in the claim form, or gave an incorrect address;

– the claimant is acting as a nominal claimant, other than as a representative claimant under Part 19, and there is reason to believe that they will be unable to pay the defendant’s costs if ordered to do so;

– the claimant has taken steps in relation to their assets that would make enforcement of a costs order more difficult (eg transferring property).