Q&As

Can you obtain disclosure against either the third party themselves or the claimant’s solicitors to ascertain the claimant’s means of funding? Can such disclosure be sought prior to joining the third party to proceedings for the purposes of obtaining an Non-Party Costs Order under section 51 of the Senior Courts Act 1981?

read titleRead full title
Published on LexisPSL on 26/02/2018

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Can you obtain disclosure against either the third party themselves or the claimant’s solicitors to ascertain the claimant’s means of funding? Can such disclosure be sought prior to joining the third party to proceedings for the purposes of obtaining an Non-Party Costs Order under section 51 of the Senior Courts Act 1981?
  • Non-party cost orders (NPCOs) against family members
  • Disclosure against a third party to ascertain the means of funding
  • Making an application
  • Other resources

Can you obtain disclosure against either the third party themselves or the claimant’s solicitors to ascertain the claimant’s means of funding? Can such disclosure be sought prior to joining the third party to proceedings for the purposes of obtaining an Non-Party Costs Order under section 51 of the Senior Courts Act 1981?

Non-party cost orders (NPCOs) against family members

The first issue to consider is that while it is possible to obtain a non-party cost order (NPCO) against a funder, the courts distinguish between different types of funders being:

  1. pure funders—someone with no direct financial interest in the outcome of the litigation ie they will not benefit from it, are not funding it as a matter of business and are not seeking to control the course of the litigation

  2. professional funders—someone who has a financial interest in the outcome of the litigation

A family member falls within the pure funder category. The Court of Appeal in Hamilton v Al Fayed (No 2) held that pure funders are generally exempt from liability under section 51(3) of the Senior Courts Act 1981 (SCA 1981) for the costs of a successful unfunded party. It was considered that pure funding of litigation ought generally to be regarded as being in the public interest, but the essential motivation for providing the funding must be to enable the funded party to litigate what

Related documents:

Popular documents