Chantrey Vellacott v The Convergence Group Plc and others: ChD 31 Jul 2007

The claimants, a firm of accountants, sued their former clients for unpaid fees. The defendant company counterclaimed for professional negligence. The claimant had expended andpound;5.6m in costs. The claimants now sought a non-party costs order against former directors of the company, which had gone into administration. They said that the company’s counterclaim was built on lies told by the directors.
Held: ‘this is a clear case for indemnity costs. I found Mr Robinson to be an evasive and untruthful witness who has sought throughout these proceedings to support a case that was advanced on a false basis.’ The director personally controlled the company and made the decisions, and his behaviour took him outside the protection of limited liability.


Rimer J


[2007] EWHC 1774 (Ch)




Supreme Court Act 1981 51, Civil Procedure Rules 48.2


England and Wales


CitedGhafoor and others v Cliff and others ChD 11-Apr-2006
The applicant had obtained revocation of a grant of administration ad colligenda bona in the estate, and having succeeded, now sought costs. The question was whether there had been proper reasons for the application for the grant. The deceased’s . .
CitedGlobe Equities Ltd v Globe Legal Services Ltd and others and Other Actions CA 5-Mar-1999
A court which was considering ordering a third party, who was not party to the action, to pay costs in an action, should first be satisfied that it is just to do so in all the circumstances. There is no need to establish any exceptional . .
CitedThree Rivers District Council and others v The Governor and Company of the Bank of England ComC 12-Apr-2006
The claimants had pursued compensation over many years from the defendants alleging various kinds of misfeasance in regulating the bank BCCI. The action had collapsed.
Held: ‘this was extraordinary litigation which came to an abrupt albeit . .
CitedGoodwood Recoveries Ltd v Breen CA 19-Apr-2005
A claim against the defendant for money owed to someone else had been bought by the claimant of which Slater, a solicitor, was a director and shareholder. The claim was pursued in the name of the claimant by Slater as its solicitor and principal . .
CitedSymphony Group Plc v Hodgson CA 4-May-1993
A section 51 non-party costs application should not be used as a substitute for the pursuit of a related cause of action against the non-party in ordinary proceedings. Nine rules were set out for allowing a costs order against someone who is not a . .
CitedDymocks Franchise Systems (NSW) Pty Limited v Todd and Todd, Bilgola Enterprises Ltd and Lambton Quay Books Ltd PC 7-Oct-2002
PC (New Zealand) The claimants asserted that the respondents had wrongly terminated their franchise licence. The agreement was subject to the New South Wales law requiring good faith, but the court had not had . .
CitedEagleson v Liddell CA 2-Feb-2001
The court may make costs orders in respect of any recourse the parties may have to an alternative dispute resolution procedure. The costs order included the costs of a mediation. . .
Lists of cited by and citing cases may be incomplete.

Costs, Company

Updated: 11 July 2022; Ref: scu.258489