North Cyprus Law | Security of Costs

North Cyprus Law | Security of CostsNorth Cyprus Law | Security of Costs

Many people have problems understanding the need and reason for security of costs in a court case. I think that people should try to understand that this procedure or rule is not for a specific case and that security of costs can be obtained from a court in any case as long as the required elements for security of costs are met and a written application to the court for security of cost is made. In other words it is a general rule which can be applied to everybody. Of course like many orders given by the TRNC courts an order for security of cost can be granted if a written application is made to the court. Some Advocates forget about this procedure or don’t think about it and therefore wouldn’t be able to obtain such an order for their client which is a good thing for the opposing party. This rule is also applicable in the British legal system and has been used for many years both in the TRNC and the UK etc.

I shall explain the reason for security of costs in plain words. Like many rules of law this rule has been put to see that justice is done, in other words the rule for security of costs is there to serve justice. How it serves justice is a question which will be understood when I explain the elements required to obtain an order from the court for security of costs. But before I explain the essentials for security of costs I would like you all to know that the costs which are granted when the case has finalised, or has had a court judgement, is granted to the winning party of an action and not to the winning parties’ Advocate (s). Therefore, costs are not secured to pay Advocate fees but they are secured to make sure that if the plaintiff loses his/her case the defendant or winning side would be able to take back their court costs or be compensated in such a way etc. In practice it is usual that Advocates do receive the money at the end but that has more to do with the retainer agreement between the client and the Advocate etc. If you feel that your Advocate doesn’t deserve that money then that is totally a different subject.

Briefly, a plaintiff (and in respect of a counter-claim which is not merely in the nature of a set-off, a defendant) ordinarily resident out of Cyprus may, at any stage of an action, be ordered by the court to give security for costs, though he may be temporarily resident in Cyprus. As you can see the primary element to be able to obtain a usual order for security of cost is that the person whom has a claim against you and has taken a legal action against you in court to ordinarily be resident out of North Cyprus. Also, there are other principal cases in which security for costs can be ordered but are very unusual in the TRNC, for example where the case is an abuse of the process of the Court, where there has been great delay in prosecuting the action, where the appellant has failed to pay the costs incurred in the lower Court, and generally where it can be shown that the opposing party, if unsuccessful, would be unable to pay the court costs. There are, inter alia, two very important exceptions to this general rule. The first is that the party which you have applied to obtain an order of security of cost against must not be a resident in a country which has a convention with the TRNC. Of course because the TRNC is not recognised and ratified internationally as a state and is a de- facto state and only recognised by Turkey the TRNC only has a convention with Turkey in this respect. The other important exception is for the person whom has a claim against you and which doesn’t ordinarily reside in north Cyprus to have ample assets in the jurisdiction. In other words, to have assets that would be able to cover the costs if they don’t succeed in the case.

In an order for security of costs granted by a court you would notice other orders would be included for instance the time for giving the security. The order of the court would also include that in default of the party giving such security within the time limited, the court case stands dismissed without further order. Therefore, I would say that an order for security of costs can be a very dangerous and important order which may finalise a court case without the court even hearing the main case.

Hak Hukuk


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