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DANILINA V CHERNUKHIN [2018] EWCA Civ 1802

In a decision that the Court of Appeal recognised was unusual, PCB successfully appealed the amount of security for costs that the Commercial Court had ordered should be provided by the Claimant. Having found that there was just a real risk that any cost order the client obtained would be unenforceable in Russia, the Commercial Court applied a sliding scale to determine the amount of that security rather than the full amount of the security to reflect its finding that there was a limited risk any costs order would be unenforceable. The Court of Appeal found that the Commercial Court should not have applied a sliding scale. Once a Court had found there was a real risk that the costs order would be unenforceable, the full amount should be ordered, irrespective of the extent of that real risk.