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No special circumstances established which could dissuade court from making order for security for costs
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High Court, in professional negligence proceedings against a firm of solicitors, grants order for security for costs against the plaintiff insolvent company, on the grounds that: the defendant has met the low threshold of establishing that it has an arguable defence to the claim as pleaded; and the deficient nature of the claim as pleaded by the plaintiff is insufficient to establish a causal connection between the plaintiff's alleged losses and the actions of the defendant, such that there are no 'special circumstances' which would justify the court in refusing to make the order sought.
Application for security for costs - substantive professional negligence proceedings against firm of solicitors - plaintiff insolvent company - company's accounts - company's relationship with its bank - bank's appointment of receiver - estimate of legal costs - law on security for costs - no dispute as to impecuniosity of plaintiff - whether a bona fide defence - whether special circumstances exist such that an order for security for costs should not be made - low threshold for bona fide defence met - whether special circumstances on a prima facie basis - extent to which defendant is liable for plaintiff's quantum of loss - loss of contracts constituted a turning point in company's relationship with its bank - statement of claim deficient - significant gap in pleadings - causal connection not made out - delay in bringing motion not determinative.
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