What should the defendant provide to support an application for security for costs?

Study for the New South Wales Civil Practice and Procedure Test. Engage with multiple choice questions, comprehensive explanations, and helpful insights. Ace your exam with confidence!

The correct response highlights the necessity for the defendant to present compelling evidence showcasing the plaintiff's inability to settle costs if the defendant prevails. In the context of applying for security for costs, it is essential to substantiate claims rather than relying on conjecture or general assumptions. By providing concrete evidence, such as financial statements, tax returns, or any other relevant documentation that confirms the plaintiff's financial situation, the defendant can effectively demonstrate why security for costs is warranted.

This approach is rooted in the principle that the court must be satisfied that there is a legitimate reason to believe the plaintiff may not be able to pay costs if the case does not go in their favor. The impact of this requirement is significant, as it protects defendants from the potential burden of incurring costs when the opposing party may not have the ability to pay if the court rules in their favor.

Other options, such as general speculation about the plaintiff's finances or detailed accounts of past costs, do not provide the necessary evidential foundation for the application. Testimonials from financial experts, while potentially useful, do not replace the need for direct evidence regarding the plaintiff's ability to meet cost obligations. Hence, solid, well-documented evidence is vital for a persuasive application for security for costs.

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