Court Of Appeal Affirms Omni Bridgeway Cost Undertaking Was Good Security For Singapore Litigation Proceedings

• Published date: 08 March 2024
• Law Firm: Omni Bridgeway
• Author: Adam Silverman and Chee Chong Lau

The Singapore Court of Appeal¹ has upheld a decision by the Singapore High Court² that a costs undertaking given by Omni Bridgeway was an adequate form of security for costs. The High Court decision was the first time a Singapore court has permitted a litigation funder to provide a costs undertaking as security. The Court of Appeal's endorsement of the decision is another example of the Singapore judiciary's continuing acceptance of third party dispute finance for court proceedings.

Background

Omni Bridgeway is funding insolvency claims in the Singapore High Court against the founder/director and auditor of a Singapore group of companies. The proceedings have been brought by the liquidators of the companies. The founder/director, Ms Olivia Lum, sought security for her costs up until the filing and/or exchange of affidavits of evidence-in-chief in the sum of SGD 90,000. The parties agreed the amount of security to be provided but could not agree on the form of security.

The liquidators maintained that a costs undertaking by two companies in the Omni Bridgeway group of companies would be a satisfactory security...