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Order for security for costs upheld where insufficient causative link is established between alleged wrongdoing and impecuniosity of plaintiff

By: Colm Scott Byrne BL

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Court of Appeal dismisses appeal and upholds decision of the High Court to order that the plaintiff appellant should provide security for the costs of the defendant respondent, measured in the sum of €150,000, on the grounds that the affidavit evidence of the appellant did not contain sufficient evidence of the pleaded causative link between the alleged wrongdoing and the impecuniosity of the appellant.

Baker J (nem diss): security for costs - Section 52 of the Companies Act 2014 - the respondent granted the appellant an option to take a lease of premises at a former hotel premises for the term of five years at an initial annual rent of €20,000, increasing in accordance with its provisions to €100,000 by year five - the premises was to be used as an emergency reception and orientation centre for asylum seekers - substantive issue between the parties is whether the agreement for lease expressly or by implication limited the use of the premises to a hotel, and whether the proposed use by the appellant was within the contemplation of the parties - the sole issue for determination in the appeal was whether the trial judge was correct that special circumstances did not exist to displace the requirement that security be provided - whether the appellant put forward sufficient evidence of the pleaded causative link between the alleged wrongdoing and the impecuniosity of the appellant - appeal dismissed.

Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.

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