Aarke v SodaStream Industries (CoA, 29 November 2024)

Dhenne Avocats · 10 October 2026

Our analysis

Summary

In an order of 29 November 2024 (UPC_CoA_548/2024), the Court of Appeal dismissed Aarke’s appeal against the Düsseldorf Local Division’s refusal to order SodaStream Industries, a claimant established in Israel, to provide security for costs under Rule 158 (EP 1 793 917). The Court clarified the relevant criteria: only the claimant’s own financial position matters, not that of its group, the likely outcome of the case is not to be assessed, impossibility of enforcement need not be proven, undue burden being enough, but the applicant for security must establish it, including the foreign law and how it is applied.

Question

On what conditions will the UPC order a claimant established outside the EU to provide security for the defendant’s costs?

Decision

Absent guarantees or special circumstances, whether the claimant belongs to a financially sound group is irrelevant: only its own financial position counts, and SodaStream’s ability to pay was not disputed (paragraph 21). An alleged intention to evade enforcement makes no difference, the test being whether enforcement would be possible without undue burden (paragraph 22). The Court should not assess the likely outcome of the case (paragraph 23). The burden of proof lies on the applicant for security, which must establish both the foreign law and its application (paragraph 24). Aarke failed to provide sufficient evidence of how Israeli courts apply the law on enforcement of foreign judgments, whereas SodaStream relied on case law of the Israeli Supreme Court (paragraph 25). Aarke’s SME status did not alter this and the appeal was dismissed (paragraphs 26 and 27).

Key points for practice

• A defendant seeking security for costs must produce specific evidence on the enforcement law and practice of the claimant’s State, not bare assertions about the length of proceedings.
• The financial strength of the claimant’s group neither offsets nor worsens its own position, absent guarantees or special circumstances.

Provisions applied

Rules of Procedure

Rules 158 and 333

Prepared by Dhenne Avocats from the official decision, consulted on 10 October 2026. The database is updated every week, on Friday. Only the official text is authoritative.