TheLaw
Well-known member
In short, here's what an application for costs means - it's the requirement that security is placed in escrow by a plaintiff with no assets to protect a defendant in a lawsuit in the event the defendant wins the suit and would thus be entitled to costs. If a US corporation has an empty wholly owned subsidiary in the UK that owns nothing more than a stapler, the US company has a "free shot" at suing a UK defendant. If the UK defendant wins, it can't recover its costs from the UK company, which has no assets. The lawsuit is actually being funded by the US company. As such, the court requires that sufficient monetary compensation exists to compensate the victor and the defendant for, at a minim, its costsof prevailing.
This means that the plaintiff has to put up and into escrow a significant amount of money to cover costs in order to continue the case, which will sit dormant until the outcome is determined.
This means that the plaintiff has to put up and into escrow a significant amount of money to cover costs in order to continue the case, which will sit dormant until the outcome is determined.