Security for Costs [Toolkit]

Litigation is expensive and time consuming, and is sometimes pursued by parties who lack the resources or inclination to pay the other side’s costs if they lose.

A respondent will commonly make an application for security for costs early in a proceeding to protect itself against the risk that the applicant will not be able to satisfy a costs order made against it in the proceeding. There are a number of key principles governing when and in what circumstances the court will exercise its discretion to award security for costs, and the form and amount of security which may be ordered.

This Practical Law Australia Dispute Resolution toolkit provides know-how resources to enable a respondent to test the means and resolve of a claimant, obtain some security for the costs incurred in the litigation, and prevent the claim proceeding if that security is not provided, including:

  • Practice note: Security for costs
  • Standard document: Application for security for costs
  • Standard document: Lawyer’s affidavit to support application

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