Syntorr v Arthrex (CFI, ORD_20895/2025, 11 August 2025)

Dhenne Avocats · 10 October 2026

Our analysis

Summary

By procedural order of 11 August 2025 (UPC_CFI_114/2025, ACT_7504/2025), Judge Pichlmaier, judge rapporteur of the Munich Local Division, ordered Syntorr, a Cypriot company and claimant in the action for infringement of EP 3 835 470, to provide security for costs of EUR 2,000,000 by 30 September 2025 in favour of Arthrex Inc., Arthrex GmbH and Arthrex Distribution Hub EMEA. Syntorr’s litigation insurance, even with an anti-avoidance endorsement giving the defendants a direct claim against the insurer, was not considered sufficient. The amount is capped at the regular ceiling for recoverable costs.

Question

Is litigation insurance with a direct claim adequate security under Rule 158.1 RoP, and may security exceed the ceiling for recoverable costs?

Decision

The defendants sought EUR 3,300,000, namely EUR 1,100,000 each, Syntorr opposed any security or alternatively offered one to two million euros in the form of insurance. According to the grounds, the claimant must provide adequate security, its insurance policy is not adequate security under Rule 158.1 RoP, and security exceeding the regular ceiling for recoverable costs, here EUR 2 million, is not justified. Security is to take the form of a guarantee from a bank authorised in an EPC Contracting State or a deposit into the UPC account. Failing that, a default decision may be given (Rule 355 RoP). The order may only be appealed after review by the panel (Rule 333.1 RoP).

Key points for practice

• Practical point: a claimant funded by insurance should plan for a bank guarantee or a deposit, as an anti-avoidance endorsement does not replace security, a defendant cannot expect more than the ceiling for recoverable costs.

Provisions applied

Rules of Procedure

Rules 158.1, 333.1 and 355

Case law cited

Court of Appeal (UPC_CoA_430/2025)

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.