Oerlikon Textile GmbH & Co KG v. Bhagat Textile Engineers, Order of the UPC Court of Appeal, 30 October 2025, Case no. UPC_CoA_8/2025
Security for costs under R. 158 RoP
HEADNOTES
• If required, subject to the circumstances of the case and substantiated by compelling reasons, an application for security for costs may be filed after the summon for oral hearing has been issued. It shall nevertheless be requested before an award on costs has been decided by the Court pursuant to R. 150 RoP since the main purpose of a security for costs in the UPC system is to protect a party from a future risk of not being able to recover its legal costs that the other party may, pursuant to R. 158.1 RoP first sentence, be liable to bear.
• The fact that, following an order of the Court of First Instance ordering the defendant to bear the costs, the Claimant, respondent in the appeal, has not yet received the corresponding payment from the defendant, is a matter of enforcement of the CFI order, and does not justify a request for security of costs in proceedings before the Court of Appeal with regard to these costs already awarded.
16. The costs incurred by Oerlikon during the CFI proceedings have already been awarded to Oerlikon by the Milan LD (Costs decision of 9 May 2025) in the amount of €77,064.65 (the CFI Costs), to be paid within one month from service of the order. The fact that, following this award of costs, Oerlikon has not yet received the corresponding payment is a matter of enforcement of the Costs decision, and does not justify a request for security of costs in proceedings before the Court of Appeal with regard to these costs already awarded.
17. Furthermore, ordering a security for costs against Bhagat in relation to the costs incurred by Oerlikon in the CFI proceedings would, unlike the costs incurred in the appeal initiated by Bhagat, lead to providing a security for costs against the defendant in an infringement action, which is contrary to the position of this Court (CoA order of 20 June 2025, AorticLab srl v Emboline, Inc., UPC_CoA_393/2025).
A copy of the Order (in English) can be read here.
A copy of the Order (in Italian) can be read here.
