Security for costs

Security for costs

STOP PRESS: On 6 April 2025, amendments to Part 25 of the Civil Procedure Rules (CPR 25) will come into force. For guidance on the changes to Part 25 and Practice Directions 25A and 25B, see Q&A: Where can I find information on the changes to Part 25 coming into force on 6 April 2025?

NOTE: The Civil Procedure Rule Committee (CPRC) is seeking views on proposed amendments to CPR 25 (Interim Remedies and Security for Costs). In particular, the proposals include the revocation of CPR PD 25A and CPR PD 25B to be replaced by stand alone prescribed forms. For further information, see: LNB News 20/12/2023 114—CPRC seeks views on proposed amendments to Part 25 of the CPR, as well as News Analyses: Minutes of the CPR Committee meeting—7 July 2023 (item 6) and Minutes of the CPR Committee meeting—6 October 2023 (item 11).

In litigation, the usual position in relation to costs is that the unsuccessful party will be ordered to pay the successful party’s recoverable costs. Such costs may be substantial, especially when dealing with cases involving

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Latest PI & Clinical Negligence News

PI & Clinical Negligence weekly highlights—20 February 2025

This week's edition of PI & Clinical Negligence weekly highlights includes an analysis of the new personal injury discount rate. We also consider a Court of Appeal decision which confirms that the rules for qualified one-way costs shifting do not exclusively apply to personal injury claims based in negligence. In addition, we have our usual roundup of other news, cases and New Law Journal articles of interest.

Transactions at an undervalue, sham litigation and settlements, Marex tort, abuse of process (Hotel Portfolio II UK Ltd (in liquidation) v Marlborough Developments Ltd)

Restructuring & Insolvency analysis: This judgment concerned two sets of legal proceedings connected to allegations of serious dishonesty, fraudulent activity and abusive litigation tactics by various parties to obstruct the enforcement of a judgment. Dr Smith and Mr Ruhan had been long-term adversaries in prolonged and bitter litigation against each other. However, they formed the ‘unholiest of unholy alliances’ in colluding in a scheme to frustrate Hotel Portfolio II UK Ltd’s (HPII’s) efforts to enforce a judgment obtained against Mr Ruhan for £102.26m. The scheme included companies controlled by Dr Smith fabricating litigation against Mr Ruhan leading to a default judgment for £850m, a fabricated settlement agreement and the transfer of assets to entities controlled by Dr Smith. The court found that the transactions were transactions at undervalue under section 423 of the Insolvency Act 1986 (IA 1986), set aside the fraudulent default judgment, struck out the sham proceedings and issued injunctions to protect HPII’s judgment rights against further tortious interference. Written by Justin Perring, barrister, New Square Chambers.

MoJ announces changes to medical reporting process for road traffic accident claims

The Ministry of Justice (MoJ) has issued a stakeholder alert confirming significant changes to medical reporting activities for road traffic accident claims, set to take effect from 6 April 2025. These changes include revised Medical Reporting Organisation Qualifying Criteria and Direct Medical Expert Rules, a modified MedCo 'offer' exclusively for represented claimants, and an approximate 25% increase to the MedCo Fixed Cost Medical Reports regime. Tracked change versions of the revised MRO QC and DME Rules have been made available, with further updates to the MedCo Qualifying Criteria Guidance Document and related audit guides expected to follow shortly. These modifications stem from the Government's response to the 'Revisions to the Medical Reporting Process for Road Traffic Accident Claims' consultation published in December 2024.

The personal injury discount rate—a review

PI & Clinical Negligence analysis: At the tail end of 2024, the Lord Chancellor, Shabana Mahmood MP, announced the results of her five-month long review of the discount rate, first announced in July 2024. One month on from the new +0.5% discount rate coming into force, Thea Wilson (barrister at 12 King’s Bench Walk) reviews the impact on cases of the new discount rate, the reaction from those representing claimants and defendants, and the implications of the change for legal practitioners.

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