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  • Writer's pictureAdministrator - Usman & Partners

Security for Costs in Malaysia

Applying for security for costs in Malaysian courts is a legal process designed to protect a defendant's interests when there is a concern that the plaintiff may not be able to cover the defendant's legal costs if the case is unsuccessful. It's important to note that legal procedures and requirements can change over time, so it's crucial to consult with a qualified Malaysian lawyer who is up-to-date with current regulations and practices. However, here are some general steps to consider when applying for security for costs in Malaysian high courts:

1. Consult with a Lawyer:

Before proceeding, consult with an experienced Malaysian lawyer who specializes in civil litigation. They can assess your case's specific circumstances and advise you on whether seeking security for costs is a viable option.

2. Grounds for Application:

Ensure that your case meets the legal criteria for seeking security for costs. In Malaysia, the general principle is that the court may order security for costs if it appears that the plaintiff may be unable to pay the defendant's costs if the defendant wins the case. Grounds for such an application may include:

- Plaintiff's insolvency or financial instability.

- Plaintiff is a foreign entity or a non-resident individual.

- Frivolous or vexatious litigation.

3. Drafting the Application:

Work with your lawyer to draft a formal application for security for costs. The application should clearly outline the grounds for your request and provide evidence to support your claims. It should also specify the amount of security sought.

4. Filing the Application:

Submit the application to the relevant Malaysian high court where the case is being heard. Pay the required filing fees.

5. Serving the Application:

Ensure that a copy of the application is served on the plaintiff or their legal representatives in accordance with the court's rules and procedures.

6. Plaintiff's Response:

After receiving the application, the plaintiff will have an opportunity to respond. They may dispute the grounds for seeking security for costs or the amount requested.

7. Court Hearing:

The court will schedule a hearing to consider the application. Both parties will have the opportunity to present their arguments and evidence. Be prepared to provide supporting documents and witness testimony, if necessary.

8. Court Decision:

The court will make a decision based on the merits of the application, taking into account the evidence and legal arguments presented by both parties. If the court grants the application, it will specify the amount of security to be paid and the terms of payment.

9. Payment of Security:

If the court orders security for costs, the plaintiff will be required to provide the ordered security amount within a specified time frame. Failure to do so may result in the dismissal of the plaintiff's case.

10. Ongoing Case:

The case will continue, and the defendant's legal costs will be covered by the security provided by the plaintiff if the defendant prevails. If the plaintiff wins the case, the security may be returned to the plaintiff, subject to any court orders.

Remember that the specific procedures and requirements may vary depending on the court and jurisdiction, so it's crucial to work closely with your legal counsel throughout the process.

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