Subpart 9—Security for costs

5.45 Order for security of costs

(1)

Subclause (2) applies if a Judge is satisfied, on the application of a defendant,—

(a)

that a plaintiff—

(i)

is resident out of New Zealand; or

(ii)

is a corporation incorporated outside New Zealand; or

(iii)

is a subsidiary (within the meaning of section 5 of the Companies Act 1993) of a corporation incorporated outside New Zealand; or

(b)

that there is reason to believe that a plaintiff will be unable to pay the costs of the defendant if the plaintiff is unsuccessful in the plaintiff’s proceeding.

(2)

A Judge may, if the Judge thinks it is just in all the circumstances, order the giving of security for costs.

(3)

An order under subclause (2)—

(a)

requires the plaintiff or plaintiffs against whom the order is made to give security for costs as directed for a sum that the Judge considers sufficient—

(i)

by paying that sum into court; or

(ii)

by giving, to the satisfaction of the Judge or the Registrar, security for that sum; and

(b)

may stay the proceeding until the sum is paid or the security given.

(4)

A Judge may treat a plaintiff as being resident out of New Zealand even though the plaintiff is temporarily resident in New Zealand.

(5)

A Judge may make an order under subclause (2) even if the defendant has taken a step in the proceeding before applying for security.

(6)

References in this rule to a plaintiff and defendant are references to the person (however described on the record) who, because of a document filed in the proceeding (for example, a counterclaim), is in the position of plaintiff or defendant.

Compare: 1908 No 89 Schedule 2 r 60