Security for legal costs: No time limit for supplementary applications

Mar 12, 2026 Benn-Ibler Rechtsanwälte

The Austrian Supreme Court (Oberster Gerichtshof, hereinafter referred to as OGH) has issued a ruling regarding the circumstances under which pre-trial security deposits may be requested from foreign claimants.

In late 2021, the plaintiff in the case at hand initiated legal proceedings against the defendant, seeking damages exceeding EUR 3 million. The court of first instance required the plaintiff to provide a security deposit of EUR 100,000 for legal costs.

The court of first instance denied the defendant’s request, submitted in early 2024, to increase the security deposit by an additional EUR 100,000, as there was insufficient certainty regarding the adequacy of the existing security deposit already paid.

In its interim judgment, the court of first instance determined that the claim was substantiated. However, the court of appeal reversed this decision and remanded the case to the lower court for additional proceedings.

Defendant requested an even higher security deposit

Subsequently, the defendant formally requested an additional EUR 200,000 to be added to the plaintiff's security deposit.

Thereafter, the defendant submitted an official request for an increment of EUR 200,000 to be included in the plaintiff's security deposit.

The court of first instance ordered the plaintiff to remit an additional sum of EUR 200,000. The proceedings have encountered considerable delays, as evidentiary processes turned out to be more extensive and expensive than initially projected. Both the prior appeal and the anticipated forthcoming appeal were expected to result in significant costs.

The appellate court upheld the plaintiff's appeal, reversed the previous ruling, and rejected the petition for an increase. It is necessary that such requests be filed before arguments on the merits or the oral hearing commence.

No specific time limits imposed on supplementary motions

The OGH clarified the following:

A defendant may petition the court to require a foreign plaintiff to furnish security for anticipated legal costs. When the conditions for such an application exist at the commencement of proceedings, the defendant must submit the request before entering into the dispute; failure to do so will result in exclusion of the application. If these conditions arise during the course of proceedings, the defendant is obligated to request the security deposit at the next hearing immediately following the oral session.

If, during legal proceedings, it is determined that the submitted security is inadequate, the defendant may submit a supplementary application. There is no prescribed time limit for filing this additional request.

OGH 4 Ob 183/25b (28 January 2026)