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Company director avoids personal liability for costs (Goknur Gida Maddeleri Enerji Imalat Ithalat Ihracat Ticaret Ve Sanati AS v Organic Village Ltd)

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Published on: 09 October 2020

Published by a LexisNexis Dispute Resolution expert

Table of contents

What are the practical implications of this case?
What was the background?
What did the court decide?
Could the court deal with the application?
Should a non-party costs order be made?
Case details

Article summary

Dispute Resolution analysis: This is an example of an exceptional case in which the court agreed to hear an application for a non-party costs order even though it had never been listed before the trial judge. While the court concluded that the director of the defendant had controlled and funded the litigation it held that the defendant (rather than its director) stood to benefit from the litigation and so the application for a non-party costs order failed. The court also held that the circumstances in which the defendant became liable to pay the sums due to the claimant meant it would have been unjust to make the director personally liable in any event. Written by Alex Bagnall, technical manager, at Total Legal Solutions.

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