Consequences of an order""""Security for costs"""""" is an order from a court requiring a party, usually the plaintiff, to pay a sum of money into court or provide a guarantee to cover the other party's legal costs if the first party loses the case. The purpose is to protect the defendant from being unable to recover their costs from an impecunious or non-resident plaintiff. This is a discretionary order, meaning the court decides whether to grant it based on specific factors, such as the plaintiff's financial circumstances and the merits of the case.
If a party fails to provide the security for costs within the specified timeframe, the court can take action, such as:
- Staying the proceedings: The case will be halted or paused until the security is provided.