Table of contents
- Original news
- What are the practical implications of this case?
- What was this case about?
- What were the facts?
- What did judge decide?
- What considerations apply when seeking a non-party costs order against a sole director of a company?
Article summary
Dispute Resolution analysis: Matthew Winn-Smith, barrister at Lamb Chambers considers the case of Spartafield Ltd v Penten Group Ltd. The court examined the circumstances in which a non-party director and sole shareholder of a litigant company may be ordered to pay the costs of unsuccessful litigation. Directorship and sole ownership are not sufficient factors, in themselves, to generate such a potential liability. Additional factors are needed which relate to the funding of the litigation, the extent of personal benefit to be derived by the non-party and the conduct of the director. However, the analysis relates very much to the application of principles, not rules, and each case must be determined on a fact-sensitive basis.
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