Category: third parties

In re RBS rights issue litigation (No 2) [2017] EWHC 1217 (Ch)

‘Subsequent to the defendant bank and its directors having learnt of the identity of the third party funders of the claimants following a successful application made under CPR r 25.14, the defendants sought security for costs pursuant to CPR r 25.14(2)(b) against those funders. That application was prompted by settlements with some of the original claimants, as a result of which the remaining claimants’ exposure to adverse costs increased, and by the defendants learning that the claimants did not have adequate after-the-event (“ATE”) insurance cover in place. The first respondent, a commercial funder and British Virgin Islands entity, opposed the application on the grounds that: (a) its financial position was such that it would be well able to meet any award for costs and in any event the defendants had not demonstrated that the claimants would fail to meet a costs award against them; and (b) the application was made extremely late and therefore caused it and the claimants real prejudice. The second respondent, an Isle of Man entity that was not in the business of litigation funding and provided funding close to the eve of trial, opposed the application on the grounds that: (a) it was unlikely that a section 51 order would be made against it in due course; and (b) no security was justified or necessary on the evidence and the timing was oppressive. Both respondents also argued that: (c) the quantum of security sought was excessive.’

WLR Daily, 23rd May 2017

Source: www.iclr.co.uk