Question 1 of 10

A defendant makes an application for security for costs against the claimant two weeks before the trial of the claim. The claimant opposes the application. The claimant company is based overseas in the USA with no assets or operations elsewhere. It has been financially solvent for many years holding both liquid and illiquid assets (as publicly available accounts across the years have shown), and has a strong claim against the defendant. What is the most accurate description of the likely outcome of the defendant’s security for costs application?

A. The defendant is likely to be successful in its application because it is not using the application to stifle the claimant’s claim. B. The defendant is likely to be successful in its application because the claimant has the ability to comply with any order made for security for costs. C. The defendant is likely to be unsuccessful in its application because of its delay in making the application. D. The defendant is likely to be successful in its application because the claimant is resident out of the jurisdiction (but is not resident in a state bound by the Hague Convention 2005). E. The defendant is likely to be unsuccessful in its application because there is no reason to believe that the claimant will be unable to pay the defendant’s costs if ordered to do so.