Charging orders—does a cross undertaking in damages arise? (DSA Investments v Optima Worldwide Group)

Article summary

Dispute resolution analysis: In DSA Investments, Deputy Master Linwood considered how costs should be dealt with where an application for a charging order had been made firstly on an interim basis (an interim charging order or ICO) and then (in part at least) on a final basis (a final charging order or FCO). The issues concerned (i) whether in principle a cross undertaking in damages could arise in respect of charging orders; (ii) whether a cross undertaking had arisen as a matter of fact; (iii) whether a third party could enforce a cross undertaking as against the applicant/beneficiary of the charging order; and (iv) whether there should be any inquiry into the alleged loss suffered by the third party. Deputy Master Linwood also considered the appropriate costs order to make in the application for a charging order and the related costs of an inquiry into the beneficial ownership of the shares the subject of the charging order....