Until recently any foreign plaintiff in Denmark who were domiciled outside EU would have to pay security for the costs if demanded by the defendant. If the security was not paid, the case would be dismissed. The only exception was, if a Danish plaintiff was exempted from paying such a security in the plaintiff's country.
This provision has now formally been changed.
The change was made after a ruling in 2004 from the Danish Supreme Court. The judgment states that demand for security in cases involving fundamental rights secured by the Community law would be in contravention with the Treaty on the European Communities art. 12, who on basis of nationalities forbid all discrimination, and also in contravention with practice from the European Court of Justice, cf. C-20/92 (Hubbard against Hamburger) and C-43/95 (Data Delecta).
The Supreme Court decided that, the provision in the Administration of Justice Act should be interpreted in accordance with European Community law.
The provision has now been clarified (and changed in a few other ways) to avoid misinterpretations.
It is important to notice that it is the plaintiff's residence or domicile which is conclusive, and not nationality as in the former provision.
The court will furthermore have the right to exempt the plaintiff from establish security, when special circumstances indicate a need. This opportunity is assumed to be used rare occasions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
