What it means
Security for costs is an order requiring a plaintiff to provide money or another form of security to cover the defendant's legal costs if the claim fails. It is most often sought where there is a real risk the plaintiff could not pay a costs order, for example a company in financial difficulty or a plaintiff based overseas. If the security is not provided, the proceeding may be stayed or dismissed. The court weighs the risk against the plaintiff's right to access justice.
How it's used
The defendant applied for security for costs, arguing the plaintiff company had no assets to pay if it lost.