Source: All England Reporter
Publisher Citation: [2017] All ER (D) 09 (May)
Neutral Citation: [2017] EWHC 924 (Ch)
Court: Chancery Division, Bristol District Registry
Judge:

Judge Paul Matthews (Sitting as a Judge of the High Court)

Representation The first claimant did not appear and was not represented.
  Charles Newington-Bridges (instructed by Pitman Blackstock White) for W.
  Thomas Steward (instructed by Temple Bright LLP) for the defendants.
Judgment Dates: 26 April 2017

Catchwords

Company - Claim - Costs - Non-party costs order - First claimant company bringing claim against defendants in respect of unpaid invoices - Judge dismissing claim - Defendants seeking non-party costs order against second claimant sole director of company - Whether non-party costs order should be made - CPR 46.2.

The Case

Company Claim. The Chancery Division dismissed the defendants' application for a non-party costs order to be made against the second claimant former director of the first claimant company, who had been joined to the proceedings for the purpose of seeking costs against him. The court held that, in order to make it just to order a director to pay the costs of unsuccessful company litigation, it was necessary to show something more, for example, that the claim had not been made in good faith, or for the benefit of the company, or it might be that the claim had been improperly conducted by the director. The mere fact that a director, who controlled the company's litigation, also funded the claim was not enough, in the ordinary case, to justify a non-party costs order against him if the company's case failed. The court held that the second claimant's behaviour in controlling, funding and, ultimately, hoping to benefit from the claim being made by the company had not gone beyond the ordinary case of the director and shareholder of a company pursuing a legal claim.

Practice Areas

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