{"id":283847,"date":"2025-06-09T15:14:35","date_gmt":"2025-06-09T15:14:35","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/requiring-security-for-costs-in-louisiana-litigation-a-strategic-tool-for-defendants\/"},"modified":"2025-06-09T15:14:35","modified_gmt":"2025-06-09T15:14:35","slug":"requiring-security-for-costs-in-louisiana-litigation-a-strategic-tool-for-defendants","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=283847","title":{"rendered":"Requiring Security for Costs in Louisiana Litigation: A Strategic Tool for Defendants"},"content":{"rendered":"
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In Louisiana state courts, litigation costs can escalate quickly, especially for a defendant. While a prevailing party is generally entitled to an award of costs, the prospect of bearing unrecoverable costs quickly becomes a serious concern for defendants when facing aggressive opposing counsel on a contingency fee and a plaintiff with limited financial resources. Even when a defendant prevails in dismissing the claims against it, recovery of costs can be difficult. Fortunately, the Louisiana Revised Statutes contain an oft-overlooked remedy that may be used to require a plaintiff to post security for costs or face dismissal<\/strong> of their claims.<\/p>\n
While a bond for costs is a familiar tool to federal court practitioners, state court litigators are often surprised to learn that the Revised Statutes contain two provisions which, if properly applied, may protect their clients from incurring substantial, unrecoverable costs in defense of meritless claims: La. R.S. 13:4522 (Statewide)<\/strong> and La. R.S. 13:1215 (Orleans Parish)<\/strong>.\u00a0 These two statutes do more than simply afford a layer of financial protection for defendants \u2013 they mandate it by providing that, if plaintiff fails to post security within the time fixed by the court, the result is a dismissal of the suit, without prejudice,\u00a0La. Rev. Stat. Ann. \u00a7 13:4522, or a non-suit.\u00a0La. Rev. Stat. Ann. \u00a7 13:1215.<\/p>\n
The Statewide Rule: La. R.S. 13:4522<\/strong><\/p>\n
The defendant before pleading in all cases may by motion demand and require the plaintiff or intervenor to give\u00a0security\u00a0for the\u00a0cost\u00a0in such case, and on failure to do so within the time fixed by the court such suit or intervention, as the case may be, shall be dismissed without prejudice. This section shall not apply to the Parish of Orleans and to cases brought in forma pauperis, nor to the state or any political subdivision thereof.<\/p>\n
La. Rev. Stat. \u00a7 13:4522<\/strong> gives defendants a procedural mechanism to manage cost exposure. In most civil suits (excluding <\/em>those filed in the Parish of Orleans), a defendant may move the court\u2014before<\/u> filing an answer or pleading<\/strong>\u2014to require the plaintiff or intervenor to provide security for litigation costs<\/strong>. If the plaintiff fails to furnish the bond within the court-ordered timeframe, the case is dismissed without prejudice<\/em>.<\/p>\n
This statute applies broadly but with key exceptions<\/strong>:<\/p>\n
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It does not<\/strong> apply in the Parish of Orleans (see<\/em> La. R.S. 13:1215)<\/strong>,<\/li>\n
It excludes cases brought in forma pauperis<\/strong>, and<\/li>\n
It does not apply where the State or a political subdivision<\/strong> is the plaintiff.<\/li>\n<\/ul>\n
The Louisiana Supreme Court has explained that the requirement for the advance posting of security for costs \u201csecures the payment of those expenses incurred by the defendant in defense of the suit which may be taxed as court costs and which the plaintiff may finally be condemned to pay.\u201d Bize v. Larvadain<\/em>, 2018-394 (La. App. 3 Cir. 12\/28\/18); 263 So. 3d 584, 592, writ denied,<\/em> 2019-0419 (La. 5\/6\/19); 270 So. 3d 577 (quoting<\/em> Carter v. Phillips<\/em>, 337 So.2d 187, 188 (La.1976)). However, this provision does not relate to ordinary court costs for which the clerk of court is authorized to demand security. \u00a0Whitson v. American Ice Co<\/em>., 164 La. 283, 113 So. 849 (1927).\u00a0<\/p>\n
But what costs are covered? In Romero v. Romero<\/em>, 232 So. 2d 572 (La. App. 3 Cir. 1970), the Third Circuit clarified that the statute is meant to protect defendants from paying upfront necessary defense costs<\/strong> that could be taxed to the plaintiff should it prevail, such as:<\/p>\n
Deposition costs (including notary and commission fees),<\/li>\n
Other costs directly tied to preparing a defense.<\/li>\n<\/ul>\n
Importantly, the trial judge has discretion<\/strong> in setting the amount of the required bond, and \u201cthe defendant bears the burden<\/strong> under this provision of showing how large a bond is necessary to protect him.\u201d \u00a0Carter v. Phillips<\/em>, 337 So. 2d 187, 188 (La. 1976). \u00a0\u201c[I]t is within the discretion of the trial judge to determine whether the showing required may be made by the allegations in the motion, supporting affidavits, the arguments of counsel at the hearing, introduction of evidence, or in any other manner which the trial judge deems appropriate.\u201d Id. <\/em>at 189. However, trial judges must exercise discretion \u201cwith the regard for the actual necessity for a bond and for the interest or motive of the party demanding it.\u2019\u201d Id<\/em>. (quoting Whitson, supra, <\/em>at 851). \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n
The Orleans Parish Rule: La. R.S. 13:1215<\/strong><\/p>\n
For suits filed in Orleans Parish, legislators have fashioned a separate statute:<\/p>\n
The defendant in any cause may require the plaintiff or party prosecuting the cause to give bond or other\u00a0security, in such amount as may be fixed by the court, to secure the repayment on the final termination of the cause of all\u00a0costs\u00a0expended by the defendant therein. The order requiring such bond or\u00a0security\u00a0for\u00a0costs\u00a0shall issue ex-parte<\/em> on the application of the party, without\u00a0costs, and no further proceeding shall be had in the cause until such bond or\u00a0security\u00a0has been furnished<\/strong>. The court shall fix the delay within which such bond or\u00a0security\u00a0for\u00a0costs\u00a0shall be furnished, and the failure to furnish it, within such delay, shall operate a dismissal of the cause as in case of non-suit. In all cases the surety for\u00a0costs\u00a0shall be considered a party to the cause and shall be condemned for the amount of\u00a0costs\u00a0recoverable in solido<\/em> with the party cast in the final judgment in the cause.<\/p>\n
For litigation within Orleans Parish<\/strong>, La. R.S. 13:1215<\/strong> provides a distinct procedure allowing defendants to request that the plaintiff (or any party prosecuting the action) furnish a bond or other form of security to cover the repayment of court costs the defendant may incur. Like La. R.S. 13:4522, this provision may be used as an early check on the viability, or lack thereof, of the plaintiff\u2019s claim.<\/p>\n
Key features of \u00a7 13:1215 include<\/strong>:<\/p>\n
\n
Applies to any civil matter<\/strong> filed in Orleans Parish, regardless of the type of claim.<\/li>\n
Unlike its state-wide counterpart, in Orleans Parish the defendant may apply ex parte<\/em><\/strong>, meaning without notice to the other side, and the court may issue the order without hearing or court costs<\/strong>. Further, the statute does not require that the defendant bring the motion before filing an answer or other pleading.<\/li>\n
The court sets the amount of the bond<\/strong> based on anticipated costs and fixes a deadline<\/strong> by which the plaintiff must furnish it.<\/li>\n
If the plaintiff fails to meet this deadline, the case is dismissed as a non-suit<\/strong>.<\/li>\n
Importantly, the surety becomes a party<\/strong> to the case and is jointly and severally liable (in solido<\/em>)<\/strong> with the losing party for any court costs awarded at final judgment.<\/li>\n<\/ul>\n
However, courts have limited what may be considered as costs <\/strong>under the Orleans Parish-specific statute. For example, in \u00a0Two Canal Street Investors, Inc. v. New Orleans Building Corporation<\/em>, 2016-0825 (La. App. 4 Cir. 9\/23\/16); 202 So.3d 1003, the Louisiana Court of Appeals for the Fourt Circuit held that speculative or indeterminate costs<\/strong>\u2014such as depositions, expert witness fees, or other litigation expenses that may or may not be taxed as costs\u2014are not<\/u><\/em> subject to security under La. R.S. 13:1215<\/strong>. These types of expenses often cannot be accurately quantified until after trial; therefore, the Fourth Circuit excluded such costs that a defendant may seek to secure.<\/p>\n
Why This Matters for Defendants:<\/strong><\/p>\n
In practice, these statutes offer strategic leverage. If a defendant is sued by a plaintiff that appears meritless, requesting security for costs can:<\/p>\n
\n
Protect the defendant from unrecoverable litigation expenses<\/strong>;<\/li>\n
Encourage the plaintiff to seriously evaluate the financial commitment<\/strong> of pursuing the claim; and<\/li>\n
Deter frivolous or speculative litigation<\/strong>.<\/li>\n<\/ul>\n
For defendants in Orleans Parish, \u00a7 13:1215\u2019s ex parte<\/em> procedure<\/strong> adds even more tactical value, enabling a fast and quiet resolution before discovery even begins.<\/p>\n
Failure to furnish court-ordered security<\/strong> can result in dismissal of the case<\/strong>. While in forma pauperis<\/em> status offers an exemption, all other plaintiffs must be prepared to timely post security if the motion is granted.<\/p>\n
Final Takeaway<\/strong><\/p>\n
Louisiana\u2019s security-for-cost statutes are powerful underutilized tools that can help manage financial risk and protect defendants from being left with the bill after prevailing in court. Whether you\u2019re considering filing such a motion\u2014or need to respond to one\u2014it\u2019s important to understand your rights and obligations.<\/p>\n
At Kean Miller LLP, we guide clients through all aspects of litigation strategy, including procedural safeguards like these. Contact our litigation teams to discuss how we can help you secure your position and control litigation risk in Louisiana courts.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"
In Louisiana state courts, litigation costs can escalate quickly, especially for a defendant. While a prevailing party is generally entitled to an award of costs, the prospect of bearing unrecoverable costs quickly becomes a serious concern for defendants when facing aggressive opposing counsel on a contingency fee and a plaintiff with limited financial resources. Even […]<\/p>\n","protected":false},"author":1,"featured_media":283848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113378,113379,113380,113376,109724,113381,105496,113377,113382,113383,113384,101235,113385,113386],"tags":[13594,33808,22414,24279,39516,2764,12953,1447],"dealstore":[],"offerexpiration":[],"class_list":["post-283847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-costs","category-defendant","category-defense-costs","category-general-litigation","category-litigation","category-litigation-costs","category-louisiana","category-louisiana-in-general","category-louisiana-revised-statutes","category-plaintiff","category-prevailing-party","category-security","category-the-louisiana-supreme-court","category-the-orleans-parish-rule","tag-costs","tag-defendants","tag-litigation","tag-louisiana","tag-requiring","tag-security","tag-strategic","tag-tool"],"yoast_head":"\n
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