Why the client needed our help
Our clients were two of eight defendants in a claim brought in the Qatar Financial Centre Civil and Commercial Court. We advised our clients that their prospects of defending the claim were strong, however, the claim was lengthy and complex meaning that substantial work would be required to robustly defend the claim. Our clients were concerned that they would not be able to recover their legal costs from the claimant in the event that they successfully defended the claim, particularly as the claimant was a company incorporated in the British Virgin Islands.
How we helped
We advised our clients to make an application for security for costs. If successful, the court would order the claimant to pay into court a significant proportion of the costs that our clients would incur in defending the proceedings. These funds could be used towards our clients’ legal fees in the event of a future costs order being made in our clients’ favour.
The Qatar Financial Centre Civil and Commercial Court had not previously made an order for security for costs, and so we prepared detailed legal submissions outlining why our clients’ position was that (a) that the court had the jurisdiction to make the order sought and (b) that it was just and equitable to make the order sought. Given the lack of precedent, we relied on case law from a number of other common law jurisdictions to support our application.
The outcome
Our clients successfully obtained what is thought to be the first ever security for costs order made in the QFC courts following a contested hearing which took place virtually. The Court ordered the claimant to pay £144,000 into court in three tranches, providing our clients with the peace of mind that they would be able to recover their legal costs if they were to successfully defend the claim.
The claimant failed to make payment of the first tranche of security ordered by the court by the given deadline. We therefore helped our clients by preparing an application to strike out the claimant’s claim against them. This application was successful, and the claims made against our clients were struck out, with the claimant also being ordered to pay our clients’ costs. Our clients were delighted that they were released from this litigation at a relatively early stage, without having to endure the stress, time and costs that preparing for and attending trial would have entailed.
