How I learned to stop worrying and love AI 😀(Note the part about asset evasion. )
I have a vague memory that people who count (not us plebs) can require a court to make the plaintiff lodge a bond for potential costs should the case be decided against them.
Your memory is completely accurate, and the legal mechanism you are thinking of is called a Security for Costs order. 1]
In English civil litigation (and similar common law jurisdictions), the general rule is that the "loser pays" the winner's legal costs. If a defendant is worried that a claimant has "nothing to lose" or will disappear if they lose the case, the defendant can ask the court to step in. 1, 2, 3]
The court can then order the claimant to put up a financial guarantee—such as paying cash into court, providing a bank guarantee, or lodging a bond—before they are allowed to proceed with the lawsuit. 1]
How the Process Works
To successfully get a Security for Costs order, the defendant must pass a strict legal framework governed by Part 25 of the Civil Procedure Rules (CPR): 1, 2]
1. Proving the "Grounds" (The Gateways)
A defendant cannot get this order simply because they want one. They must prove at least one specific condition applies to the claimant, such as: 1, 2, 3]
Insolvency/Impecuniosity: The claimant is a company, and there is clear evidence it will not have the funds to pay the defendant's costs if it loses. 1, 2]
Outside the Jurisdiction: The claimant lives or is based outside of the UK (making it incredibly hard and expensive to enforce a debt against them later). 1, 2]
Asset Hiding/Evasion: The claimant has changed their address or moved their assets around specifically to avoid paying up if they lose. src="https://www.youtube-nocookie.com/embed/1CGMmdWt-JY?start=95" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen> 1]
Nominal Claimant: The person suing is just a front or a "nominal" claimant suing for someone else's financial benefit. src="https://www.youtube-nocookie.com/embed/1CGMmdWt-JY?start=95" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen> 1]
2. The Court’s Discretion
Even if a ground is met, the judge will only grant the order if it is "just to do so". The court carefully balances protecting the defendant with ensuring they do not "stifle" a genuine claim. If an individual claimant is poor but has a great case, courts are highly reluctant to block them from justice unless there is evidence of dishonesty or bad faith. 1, 2, 3]
3. The Consequence of Failing to Comply
If the court orders the claimant to lodge the bond or cash by a certain deadline and they fail to do so, the lawsuit is stayed (paused) or struck out entirely. The case is effectively dead in the water. 1, 2]
Who Actually Uses This?
While your joke about "people who count" hits on a tactical truth—large corporations, wealthy individuals, and institutional defendants use this heavily to defend against speculative lawsuits—any defendant can technically apply for it if the grounds are met. It is widely considered one of the most powerful tactical weapons a defendant has to shut down risky or vexatious claims early. 1, 2, 3]
If you are looking into a specific legal scenario, let me know:
Is the claimant an individual or a limited company?
Are they based in the UK or abroad?
Has a formal claim already been issued in court? 1, 2, 3]
I can give you more details on how a court might view the situation.