Geoffrey Vos QC faced an application for an order for costs against a third party. He reminded himself: ‘The court must ask whether, in all the circumstances, it is just to exercise the power under s.51 to make the non-party liable for the costs (or part of the costs) of the litigation. Whatever the limits of the court’s discretion to order sole or guiding director of an insolvent company to pay the costs of an action brought by or against that company, it is clear that such discretion may be exercised as in circumstances in which: –
1 the director had the management of the litigation on behalf of the company; and
2 the director acted improperly in conducting the litigation.
There may be many categories of relevant impropriety. But such impropriety must be of a serious nature. I have no doubt, however, that sufficient impropriety might be shown if the director:
a) deliberately pursues a concocted claim or defence, knowing it to be false; or
b) swears false evidence in support of such a claim or defence with the intention of misleading the Court’.
Geoffrey Vos QC
27 March 2000, unreported
England and Wales
Cited by:
Cited – Goknur v Aytacli CA 13-Jul-2021
Third Party Costs – Director of Insolvent Company
(Organic Village) The Court considered the circumstances Limited in which a director and shareholder of an insolvent company may be personally liable for some or all of that company’s costs liabilities incurred in unsuccessful litigation, pursuant . .
These lists may be incomplete.
Updated: 16 July 2021; Ref: scu.665983
