UPC CFI, LD Dusseldorf, 15 June 2025: No security for costs to be provided by non-practicing entity ("NPE")
05-09-2025 Print this page
Security for costs dismissed (R. 158 RoP).
It is sufficient for a defendant to establish that enforcement of a cost order is unduly burdensome.
The burden of showing this is on the applicant of an order for security for costs.
To this end, the applicant shall not only provide evidence as to the foreign law applicable in the territory where the order shall be enforced, but also its application.
Furthermore, the Court notes that, according to the UPC case law, US courts routinely recognise and enforce judgments of foreign courts.
Furthermore, the Defendants have failed to submit any substantiating facts indicating a tangible risk of insolvency. In particular being an NPE as such is not sufficient to give rise to a risk of insolvency of the Claimant.
