Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Saturday, 2 July 2011

Non-party costs order

In a recent case, the judge ordered non-parties to pay the successful Claimant’s costs.

Proceedings were issued by M against C a company. C was insolvent and unable to fund a defence to the proceedings. Several of C’s shareholders, having an interest of their own to protect, agreed to fund the defence and took an active part in controlling the litigation by taking major decisions themselves.

The Court held that four of the nine shareholders had not played an active role in the defence and were not liable to contribute to the costs ordered to be paid to M. However, the Court found that the remaining five shareholders had taken a decision to fund the defence and in doing so were acting outside their usual role in the ordinary run of cases. They Court ordered that they were jointly and severally liable for M’s costs.

Care should be taken when agreeing to fund litigation and if necessary legal advice sought as to the possibility of a non-party costs order being made.

Felicity Keeler: Senior Paralegal Civil Litigation: telephone 0845 270 2511

Labels: costs, fund, litigation, non-party, order