Security in the Court of Appeal

Great Future Ltd and others v Sealand Housing Corporation and others [2003] EWCA Civ 682

In a claim based on fraud, misrepresentation and breach of warranty, the claimant obtained judgment with an order for an enquiry as to damages. In the meantime, the defendants were ordered to make an interim payment on account of costs of £1m. The damages were assessed at $65m and the defendants were ordered to make a further interim payment of £1m costs. On the defendants’ appeal to the Court of Appeal, the Court ordered that there should be a between-the-parties hearing of their application for permission to appeal, with the appeal to follow if permission were granted. The claimants applied for an order that the two orders for interim costs be complied with before the appeal would be heard, together with security for their estimated costs of the appeal. They based their application on the provisions of CPR Part 52, that an order giving permission to appeal may be made subject to conditions, and on the courts case management powers under CPR rule 3.1 which provide: