The Court ordered further security for costs of $2,050,000 (comprising $450,000 for Tranche 6B and $1,600,000 for Tranche 7), reducing the first defendant's claim of $2,858,217.61 by applying a 50% discount to solicitors' fees (rather than the 65% proposed by the defendant) and further broad-brush reductions for uncertainties including duplication risk. On the form of security, the Court accepted a Double Deed Arrangement comprising a deed of indemnity from AmTrust (a UK-based insurer) and a deed poll from the litigation funder LCM Funding, departing from the ordinary course of payment into court, on the basis that AmTrust's financial standing was unchallenged, AmTrust had given an undertaking to the Court with consent to judgment and enforcement terms, $50,000 enforcement costs were already paid into court, and critically, AmTrust had since been authorised as a Category C Insurer in Australia with assets in the jurisdiction exceeding the total security amount. The Court distinguished the Federal Court's refusal of a similar arrangement in the Stillwater appeal on the basis that materially different evidence and deed terms were before the Court in this case.
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