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Carlo Taczalski and Frederick Simpson are successful in the Court of Appeal as it holds that cross-undertakings have little place in the security for costs regime

An emphatic and unanimous Court of Appeal has overruled every reported case in which a cross-undertaking has been required as the ‘price’ for a defendant obtaining security for its costs; it has confirmed that while a jurisdiction to require such a cross-undertaking exists, it should be exercised only in “rare and exceptional circumstances”, which should be “even rarer and more exceptional” when the party providing the security is a commercial litigation funder.

The judgment can be accessed here.

Carlo Taczalski and Frederick Simpson appeared in the Court of Appeal for SRLV (a firm), one of the successful parties resisting a cross-undertaking. They are led in the main action by Ben Quiney KC, and are instructed by Martin Chesher, Laura Hurst and Henry Saunders of Kennedys Law LLP.

To read the case note, please see here.

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