District Court Rules 2014

Subpart 9—Security for costs

5.48 Power to make order for security for costs


This rule applies if the court is satisfied, on the application of a defendant,—


that a plaintiff—


is resident outside New Zealand; or


is a corporation incorporated outside New Zealand; or


is, within the meaning of section 158 of the Companies Act 1955 or section 5 of the Companies Act 1993, as the case may be, a subsidiary of a corporation incorporated outside New Zealand; or


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.


When this rule applies, the court may, if it thinks fit in all the circumstances, order the giving of security for costs.


An order under subclause (2)—


must require the plaintiff or plaintiffs against whom the order is made to give security for costs in respect of the sum that the court considers sufficient—


by paying that sum into court; or


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


may stay the proceeding until the sum is paid or the security given, as the case may be.


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


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


References in this rule to a plaintiff or 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: SR 2009/257 r 4.20