Wasted costs against solicitors acting without proper authority (Rushbrooke UK Ltd v 4 Designs Concept Ltd)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Restructuring & Insolvency analysis: Wasted costs were ordered against a firm of solicitors who had acted for a company seeking an injunction preventing the presentation of a winding-up petition, in circumstances where it did not have the company’s authority to act for it. The solicitors had not properly satisfied themselves that they had the company’s authority, and the court found that they should pay the costs of the proceedings. His Honour Judge Paul Matthews explored the authorities on wasted costs, and whether they applied in this case. Written by Ali Tabari, barrister and mediator at St Philips Chambers.