Security For Costs: High Court Rejects Parent Company Guarantee In Favour Of Payment Into Court

• Published date: 21 February 2024
• Law Firm: Herbert Smith Freehills
• Author: Herbert Smith Freehills

In the context of a claim by a Russian company against two banks for failing to pay sums due under on-demand bonds, the High Court has allowed the banks' security for costs application and ordered the claimant to make a payment into court of '1.85 million: LLC EuroChem North-West-2 v Société Générale SA & Ors (2023).

Where the court orders a claimant to provide security for costs, it has a discretion to permit security to be provided other than by way of a payment into court. However, this decision acts as...