Upgraded Protection: Security for Costs in DIFC Litigation
Type
E-journal
Date
16 Mar 2016
Jurisdiction
Dubai
Taxonomy
Litigation Procedure & Practice
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
The recent decision of the Dubai International Financial Centre (“DIFC”) Court of Appeal in Asif Adil v Frontline Development Partners Limited CA 005/2015 (issued on 15 September 2015) has brought much needed clarity to the principles governing the grant of security for costs orders in DIFC Court litigation.
The practical effect of the judgment is that it is arguably harder for Claimants to oppose an application for security on certain grounds. Al Tamimi represented the Defendant (the applicant) in this case.
The costs of litigation can be high and the prospect of the winning party not being able to recover its legal expenses makes for a shallow victory. Most common law jurisdictions allow a Defendant to secure a payment into court from a Claimant, as a precondition to being permitted to continue to pursue a claim. The purpose of granting security for costs is to provide costs protection to a Defendant who is forced into litigation at the election of another.