Shell UK Limited v Advisory Business Services Plc & Ors

An application for security for costs was granted. The first defendant was required to pay a specified sum into court by a fixed deadline. Failure to comply would stay that defendant’s appeal. The stay was confined to the first defendant, while costs were apportioned according to the parties’ conduct of the application.

Shell UK Limited applied in the Court of Appeal in proceedings arising from an appeal from the Central London County Court before His Honour Judge Winstanley. The application concerned security for costs and an apparent uncertainty about whether any resulting stay was intended to affect all appellants or only the first defendant. The court also considered the proper substitution of the first defendant and responsibility for the costs of attendance by the second and third defendants.

1. Substitution. ABS was substituted as the first defendant in place of AB Advisory Business Services Plc.
2. Security for costs. The first defendant was ordered to provide security for the claimant’s costs in the sum of £12,000, payable into court by close of business on 2 April 2001.
3. Effect of non-compliance. If the security was not paid by the deadline, the stay would affect the first defendant’s appeal only. The court did not order a stay of the appeals of the other appellants.
4. Costs of the application. The claimant was awarded its costs against the first defendant. The court held that the second and third defendants were entitled to attend to clarify the confusion about the scope of the proposed stay, and ordered the claimant to pay their costs of the appearance. The first defendant was also ordered to pay £1,202.03 in assessed costs into court by the same deadline, failing which its appeal would be stayed.

• Court of Appeal (Civil Division): Determined an application for security for costs arising in an appeal and made the orders described above.
• Central London County Court: The appeal originated from that court before His Honour Judge Winstanley. No citation for the decision appealed was stated.