Case Brief: Security for costs automatically granted against foreigner Plaintiffs not listed in Reciprocal Enforcement of Judgements Act 1958 (REJA 1958)?

Case Brief: Security for costs automatically granted against foreigner Plaintiffs not listed in Reciprocal Enforcement of Judgements Act 1958 (REJA 1958)?

Security for costs is an order requiring a party to pay money into court or to parties’ solicitors as stakeholder to cover the opponent’s costs. Generally, security for costs applications are initiated against foreigner Plaintiffs not listed under REJA 1958.

However, despite the (1) Plaintiff is a foreigner company and (2) not listed in REJA 1958, these 2 factors alone are insufficient grounds to grant security for costs. Case laws of Taimoku Corporation (Japanese company), Salchi SPA (Italian company) have upheld such legal principles.

The Johor Bahru High Court recently affirmed these legal principles and held in our Client’s favour – that a security for costs application premised on this 2 factors alone are insufficient grounds to grant security for costs.

Our Partner Lim Kuan, was assisted by our Associate, Mei Yen Lee, in defending against the security for costs application.

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