Security

Federal Bank of the Middle East Ltd v Hadkinson and Others (CA LSG 24 November: TLR 7 December)

The claimant obtained summary judgment for US$11.5 million against three defendants who were impecunious. They appealed. The defendants’ costs of high level legal representation had been funded by individuals who were outside the jurisdiction and who, although they were willing to finance the appeal, were unwilling to risk paying the claimant’s costs if the defendants’ appeal failed. In response to the claimant’s application for security for costs the defendants argued that the order stifled their appeal and that a different approach to security for costs was required under the Civil Procedure Rules since under them permission was now required for all appeals and permission was granted only where the appeal was meritorious. The appeal was dismissed on three grounds: